TaxTMI 
TaxTMI 
2010 (3) TMI 1117
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....ER Chandra Poojari (Accountant Member) These two cross appeals one by the assessee and the another by the Revenue are directed against the common order passed by the CIT(A)-III, Hyderabad dated 6.3.2009 and pertains to the assessment years 2005-06 and 2006-07. Since common issues are involved in these two cross appeals, they are clubbed together, heard together and disposed for the sake of conve....
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.... accounts were found maintained by the assessee during the course of survey and no books of account was produced during the assessment proceedings, the assessing officer estimated the total receipt of the year at ₹ 56,58,408/- on the basis of receipt books impounded during the survey. Since the assessee has admitted only gross receipts at ₹ 20,91,331/- in its profit and loss account an....
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....o be determined at 15%. 5. The DR submitted that the profit to be estimated after considering the location of the business premises, competition in the business in that locality, availability of employees etc., He submitted that in the present case, the hospital is situated in a best locality at Karimnagar and estimated income by assessing officer to be sustained . 6. We have heard both the part....
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....and further deduction cannot be allowed. We are not agreeing with this proposition. There are two kinds of expenditure to be incurred by the assessee. One is fixed expenditure and the other one is variable expenditure. Fixed expenditure of the assessee is fixed and does not change depending upon the gross receipts. However, variable expenditure will change depending upon the quantum of business ca....