High Court upholds exclusion of Govt-supplied materials from contract profit estimation.

The High Court of Allahabad ruled in favor of the assessee, upholding the Income-tax Appellate Tribunal's decision to exclude the cost of materials supplied by the Government when estimating profit in a contract, in line with the Supreme Court's decision in Brij Bhusan Lal Parduman Kumar v. CIT [1978] 115 ITR 524.

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The High Court of Allahabad ruled in favor of the assessee in a case referred by the Income-tax Appellate Tribunal. The Tribunal was right in estimating the profit by excluding the cost of materials supplied by the Government, as per the terms of the contract. The Supreme Court's decision in Brij Bhusan Lal Parduman Kumar v. CIT [1978] 115 ITR 524 supported this ruling.

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