COMMISSIONER OF INCOME TAX Vs. INTER CONTINENTAL CONSTRUCTIONS

JUDGEMENT

(1.) ORDER dated 08 -04 -2003 passed by the Visakhapatnam Bench of the Income Tax Appellate Tribunal (for short, the Tribunal) in I.T.A. No. 921/H/97 referable to the assessment year 1994 -95 is under challenge in this appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act).

(2.) THE following questions are raised:

(3.) THE respondent carried the matter in appeal to the Commissioner of Income Tax (Appeals), Visakhapatnam. The Commissioner directed the assessing officer to take the estimated net profit at 11.5% as against 12.5%. He has also allowed deduction of interest on capital arranged by the partners and amount paid as salaries to the partners. Deduction of interest on loans was disallowed. Therefore, the respondent carried the matter in further appeal to the Tribunal. Following the order passed by the Hyderabad Bench in I.T.A. No. 1057/Hyd./1988, the Tribunal allowed deduction of interest on other loans also. Hence, this appeal by the Revenue.