TMI Blog1973 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... 62 ? " - - - - - Dated:- 14-3-1973 - Judge(s) : V. RAMASWAMY., G. RAMANUJAM. JUDGMENT The judgment of the court was delivered by RAMANUJAM J.- The following question has been referred to this court at the instance-of the revenue : "Whether, on the facts and in the circumstances of the case, the cost of the materials supplied by the Government was not liable to be included in the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to it, there was no element of profit in the cost of the materials supplied by the departments. The Income-tax Officer was, however, of the view that if the assessee had purchased the building materials such as cement, steel, etc., in open market, it would have been in a more disadvantageous position, and that, therefore, it had definitely an advantage in getting the required materials from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e buildings it had undertaken to erect. The Tribunal accepted the assessee's case and held that the income of the assessee has to be calculated only on the actual receipts and that the cost of the materials supplied by the Government cannot be included in the assessee's receipts. The question is whether the Tribunal was right in setting aside the addition of the cost of the materials to the actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, in a position to say that the turnover represented by the cost of the materials supplied, in any manner, contributed to the profit of the assessee. We find that the decision rendered by the Kerala High Court in M. P. Alexander Co. v. Commissioner of Income-tax, has also taken the same view on similar facts. In our view, the Tribunal has come to the right conclusion on the facts of this case. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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