1974 (12) TMI 6

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..... d with the assessment years 1964-65 and 1965-66 for which the relevant accounting years are the years ending on 31st March, 1964, and 31st March, 1965, respectively. The assessee is an individual. He carries on business of executing contracts for the Executive Engineer, North Bengal Construction Division, and the Executive Engineer, Torsa Bridge Construction. The assessee received gross amounts of .....

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..... ron rods, etc., costing Rs. 1,44,408 and Rs. 1,99,383 in the respective two years under consideration. According to the assessee, the cost of the materials should have been deducted from the gross amounts of bills for the purpose of determining the net profit earned by the assessee. The Appellate Assistant Commissioner was of the view that the assessee did earn profits on the cost of materials sup .....

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..... at a net profit rate as applied by the departmental authorities on the gross amounts of bills without deducting the cost of materials supplied by the Government was legally justified for the assessment years 1964-65 and 1965-66?" Counsel for the assessee contended before us that there could not be any proposition of law that in a case of materials supplied in a tender where the materials were sup .....

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..... hat price. Furthermore, the gross profit has been computed on the total gross bill of the assessee. In the aforesaid background the Tribunal had come to the conclusion that the assessee, though tendered the contract as a whole, it must have included the cost of materials which were supplied by the Government as an element of profit in respect of cost of materials also. We are of the opinion that i .....

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..... d also on the decision of this court in the case of Gopendra Krishna Saha v. Commissioner of Income-tax in I.T. Ref. No. 184 of 1969, judgment delivered on 27th September, 1974 (since reported in [1978] 113 ITR 421 (Cal) (Appendix No. 2)). In the aforesaid view of the matter, question referred to this court is answered in the affirmative and in favour of the revenue. Each partly will pay and bea .....

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