1994 (7) TMI 57

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....56(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), are that Vinod Kumar Bhatia, the respondent (hereinafter referred to as "the assessee"), who is a building contractor, filed an income-tax return for the assessment year 1984-85 showing an income of Rs. 1,20,730. The assessee had not maintained any accounts and the income mentioned in the return was arrived at by applying, p....

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....d appeal before the Income-tax Appellate Tribunal. That appeal was partly allowed by order, annexure P-4, dated July 3, 1992. It was noted that admittedly the assessee had paid interest on the amount of loan from the banks and the Life Insurance Corporation and had used the truck for purposes of the business. It was observed that there could not be any rigid formula that where income was estimated....

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....4,158 on account of interest paid and Rs. 76,725 on account of depreciation on truck when the total income has been computed by applying a flat rate of ten per cent. on the total contract payments ?" The application was dismissed by the Appellate Tribunal by order, annexure P-1, dated December 10, 1992. Hence, the present petition under sub-section (2) of section 256 of the Act. We have hear....

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....ccording to any formula provided by any law. It was a convenient method of working out the profit. Probably that mode is adopted in similar cases. In the facts of the present case, instead of mentioning a lower figure, say, seven or eight per cent., without separately claiming depreciation on permissible accounts, the assessee separately mentioned about the deduction, while keeping ten per cent. o....