TMI Blog1974 (8) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... claring an income of Rs. 20,852 from his contract business and from a printing press which he runs. It has been the assessee's case throughout that he has not maintained any accounts for the various contract works executed by him. He, however, produced receipts showing the amounts received by him from the Government for the various contract works executed by him. He supplied the following figures for the three assessment years in question : ---------------------------------------------------------------------------------------------------------------------------------- Period Gross amount Material supplied Net amount by the Govt. ------------------------------------------------------------------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (V. D. Rajarathanam v. Commissioner of Income-tax), and that where an assessee does not at all place his accounts and says that he has no accounts at all to be placed, the estimate of his profits or income has to be made on the basis of the value of the total bills and not on the basis of the net amount received by him after deducting the cost of material supplied by the Government from the gross value of the bills. A similar contention, as is now put forth by Mr. Subbaiah on behalf of the assessee, was raised before Chief Justice Jaganmohan Reddy (as he then was) and Justice Anantanarayana Ayyar in the abovesaid R.Cs., i.e., R.Cs. 52/62 and 36/66 and that was repelled by the learned judges observing : " The contention of Mr. Ramachandra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee had to be determined on the basis of the contracts as a whole and not on the value of the contracts after deducting the cost of the material supplied to him by the Government. A similar question, as in this case, arose in the case of Brij Bushan Lal v. Commissioner of Income-tax, and the learned judges of the Punjab High Court justified the order of the Tribunal which held that the price of the stores supplied by the military authorities must be included before applying the flat rate to the assessee's receipts. Therefore, a flat rate of 10% of profit or income was applied in that case on the best judgment basis. We are, therefore, of the view that the Tribunal was not justified in holding that the net profit should be esti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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