TaxTMI 
TaxTMI 
1987 (9) TMI 113
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....; ------------ Balance Income Rs. Nil" ------------ The assessee sought carry forward of balance of loss of Rs. 39,673. In completing the assessment, the income was computed as under by the ITO : "Busine....
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....p; ------------ and he directed carry forward of losses as under : "Loss relating to the assessment year 1979-80 Rs. 18,055 1980-81 Rs. 17,310" The Commissioner, on a perusal of the records was of t....
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....(2) Construction of Credit House Complex, Kalpakkam. Rs. 3.25 lakhs 1971 (3) Construction of Type 9 Quarts 52 Nos. Rs. 9.19 lakhs. 1973 (4) Construction of Hostel Rs. 13,00,000 appxly. 1975 (5) Construction of Type IV Quarts 6.25 lakhs. 1976 (6) Providing finishing works at FBTR, Kalpakkam Rs. 4.45 lakhs. 1977 (7) Construction of Type IV Quarts 6.75 lakhs. 1978 (8) 1979 (9) No fresh contract. 1980 Tiruchendur Flats 18 Nos. A Block 1981 Construction of Tiruchendur Apartments 6 Nos. B Block 1982 &n....
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....m 1967 right up to 1977 from outside and independent parties, such as Autonomous Bodies, etc. In these contracts, as is usual, the assessee would have to fulfil the same and whatever surplus or deficit resulted would be the assessee's recompense. This would be either profit or loss from business. The agreement of 10th March, 1980 reads as under : "This agreement entered into this 10th day of March, 1980, between Shri AR. Ramaswami of Pallathur, Ramnad District herein after referred to as Party of the First Part and M/s. Parthi Constructions, by Proprietrix Smt. Parvathi Ramaswamy of 13, Leith Castle Street, Santhome, Madras -28 hereinafter referred to as the Party of the Second Part Witnesseth : Whereas the Party of the First Part has acquired the vacant land measuring 9025 sq. ft. known as "Plot A (in which the 'Block A' is to be constructed consisting of 18 Flats) and 5797 sq. ft. known as Plot B (in which 'Blocks B & C' are to be constructed consisting of 6 Flats and a shopping complex respectively) both situated in T. S. No. 2 in Block No. 6 at door No. 1 Babu Rajendra Prasad Street, in West Mambalam, Madras-33 with a view to construct flats to be sold to various persons,....
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....id is described in the agreement as "supervision charges 10 per cent of the cost of construction of the flats on the abovesaid land". Clause 2 particularly states that this amount is to be paid for attending to the construction of the flats to the assessee. The husband was to advance money for the construction as and when required by the assessee and finally it was agreed that the assessee proceed with the construction work immediately. There is no finding that the agreement was collusive or did not reflect the true state of affairs in the order of the C. I. T. Therefore, we have to proceed on the basis that this was an agreement entered into between two independent parties in the usual course of commerce though it is between husband and wife. The assessee was carrying out the contract work for which of course she did not have to finance expenditure immediately or ultimately from her pocket because, whatever money was expended was reimbursed by the husband. What the assessee got was a fixed amount with reference to the total expenditure incurred. This was paid on completion of the work. Thus, the expenditure on 'A' Block was Rs. 8,95,850 and the amount received by the assessee at 1....