Itta/70/2002 Of Commissioner Of Incometax-3 Hyd v. Y.ramachandra Reddy

HON’BLE SRI JUSTICE L. NARASIMHA REDDYANDHON’BLE SRI JUSTICE CHALLA KODANDA RAM I.T.T.A No.70 OF 2002 JUDGMENT:-(Per Hon’ble Sri Justice L.Narasimha Reddy) This appeal under Section 260A of the Income Tax Act, 1961 (forshort, ‘the Act’) is preferred by the Revenue feeling aggrieved by the orderdated 23.11.2001, passed by the Hyderabad Bench ‘A’ of the Income TaxAppellate Tribunal in I.T.A.No.404/H/01. 2) The controversy is about the allowance of depreciation and interest tothe assessee, whenever the profit from a business is determined at certainpercentage, than on the basis of actual verification of records. TheAssessing Authority took the view that once the determination of the profitsis on the basis of fixed percentage, it is deemed to have taken into its foldthe depreciation and other allowances. 3) Heard Sri J.V. Prasad, learned Standing Counsel for the Revenueand Sri A.V. Krishna Koundinya, learned counsel for the respondent. 4) The very controversy that arises in this appeal was the subject matterof I.T.A.No.48 of 2002. Incidentally, it is with reference to the sameassessee, but in relation to a different Assessment Year. Through our orderdated 30.07.2014, we took the view that even where the profit of theassessee is determined by taking recourse to Section 144 of the Act, thedeductions and allowances, which are otherwise permissible in an ordinaryassessment, must be allowed. 5) Following the same, we dismiss this appeal. There shall be no orderas to costs. Miscellaneous Petitions, if any pending in this appeals shallalso stand disposed of. ___________________________ L. NARASIMHA REDDY, J Date:05.08.2014gk/va ____________________________ CHALLA KODANDA RAM, J HON’BLE SRI JUSTICE L. NARASIMHA REDDYANDHON’BLE SRI JUSTICE CHALLA KODANDA RAM va/gk I.T.T.A No.70 OF 2002 Date: 05.08.2014