2001 (9) TMI 14

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....e Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, under section 256(1) of the Income-tax Act, 1961, has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in treating the claim of depreciation as covered in the rate of net profit applied by it?" The assessee-firm, carrying on construction bus....

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....y be noticed that the assessing authority did not allow depreciation separately because in his view, if it was so done, the net profit would fall to as low as 5.63 per cent. He, therefore, applied the rate of 8 per cent. The Commissioner of Income-tax (Appeals) brought down the net profit rate to 7.44 per cent. The Tribunal without giving any reason has simply brought down the rate to 7 per cent. ....

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....ried to bank upon section 40(b) of the Income-tax Act, 1961. In our view, section 40(b) of the Act is not attracted in the instant case. The instant reference pertains to the assessment year 1992-93. The amendment of section 40(b) of the Act by the Finance Act, 1992, came into effect from April 1, 1993. Thus, it applies in relation to the assessment year 1993-94. In CIT v. Jain Construction Co.....