https://www.taxtmi.com/caselaws?id=39465 Where a contractor fails to produce books of account, taxable profits must be estimated from gross contract receipts inclusive of materials supplied under the contract rather than from amounts purporting to be net after deduction of such materials. The court applied the principle that, in absence of accounts, the contract as a whole and the gross value of bills govern profit estimation; when materials are government supplied but bills are gross, an inference that receipts include material value is drawn. Prior decisions applying a flat rate to gross receipts in comparable facts were followed and the issue resolved against the assessee. en-us Wed, 28 Aug 1974 00:00:00 +0530 Fri, 16 Apr 2010 16:02:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39465 Where a contractor fails to produce books of account, taxable profits must be estimated from gross contract receipts inclusive of materials supplied under the contract rather than from amounts purporting to be net after deduction of such materials. The court applied the principle that, in absence of accounts, the contract as a whole and the gross value of bills govern profit estimation; when materials are government supplied but bills are gross, an inference that receipts include material value is drawn. Prior decisions applying a flat rate to gross receipts in comparable facts were followed and the issue resolved against the assessee. Case-Laws Income Tax Wed, 28 Aug 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39465