TMI Blog1987 (7) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of this case, the cost of materials supplied by the Government was liable to be included in the total receipts of the assessee for calculating its profits for the assessment year 1968-69 (appears to be a typing mistake for 1974-75) ? " The relevant assessment year is 1974-75. This reference is Concluded by a Division Bench decision of this court in the case of this very as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of 2% on the payment, the gross receipt was Rs. 16,54,900 and not Rs. 15,91,270.74. The Income-tax Officer held that the gross receipt of the assessee was Rs. 16,54,900. He also held that the net profit of the assessee should be estimated at 10% on the gross receipt. He accordingly assessed the net profits as such. The assessee appealed against the order of the Income-tax Officer. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s brought to the site shall become and remain the property of the Government and shall not be removed off the site without the prior written approval of the G.E. But whenever the works are finally completed, the contractor shall at his own expense forthwith remove from the site all surplus stores and materials originally supplied by him and upon such removal, the same shall revest in and become th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he military authority. It also held that the materials supplied by the Department were utilised by the assessee in the works and thus the assessee had no profit from the materials supplied by the Department. The finding of fact thus was that there was no element of profit arising out of the works contract in respect of the stores/materials supplied to the assessee by the Department for the simple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost of materials supplied to the assessee by the military authority was not liable to be included in the total receipts of the assessee for calculating its profits for the assessment year 1974-75. The reference is thus answered in favour of the assessee and against the Revenue, but Without costs. Let a copy of this judgment be transmitted to the Assistant Registrar, Income-tax Appellate Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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