2002 (10) TMI 55

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....ACHANDRAN NAIR J.-The assessee, a civil construction firm, is the appellant before us against the common order of the Income-tax Appellate Tribunal for the assessment years 1993-94 and 1994-95. The assessee admittedly did not maintain books of account. However, returns were filed estimating the net income at 7 per cent. of the contract receipts. The Assessing Officer taking note of the net profit ....

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....eduction under section 40(b) of the Act towards payment of salary to partners and interest on advances. However, the Tribunal, taking note of the fact that the assessee did not maintain books of account, and that the assessee returned a higher rate of profit for the earlier years at 10 per cent., fixed the net income at 10 per cent., and allowed the deductions claimed under section 40(b) of the Ac....

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....we are informed that for one year there is enhancement of tax consequent on the order of the Tribunal. Enhancement of estimated income of the assessee is from 8 per cent. to 10 per cent. On going through the orders of the Tribunal, and after hearing counsel for the assessee, we find that the assessee pressed for deductions towards payment of salary and interest to partners. The Tribunal also notic....

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....s. When the officer himself fixed the income at 8 per cent. covering all deductions and when the Tribunal did not find any ground to interfere with the same, there was no necessity for the Tribunal to enhance the income and simultaneously grant deductions without realizing its tax effect so far as the assessee is concerned. We, therefore, find that the order of the Tribunal resulting in enhancemen....