1987 (7) TMI 85

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....following question has been referred to us for our opinion : " Whether, on the facts and in the circumstances of this case, the cost of materials supplied by the Government was liable to be included in the total receipts of the assessee for calculating its profits for the assessment year 1968-69 (appears to be a typing mistake for 1974-75) ? " The relevant assessment year is 1974-75. This....

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.... from the total payment. The Income-tax Officer was of the view that as income-tax is deducted at the rate of 2% on the payment, the gross receipt was Rs. 16,54,900 and not Rs. 15,91,270.74. The Income-tax Officer held that the gross receipt of the assessee was Rs. 16,54,900. He also held that the net profit of the assessee should be estimated at 10% on the gross receipt. He accordingly assessed t....

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....see. Paragraph 33 of the conditions of the contract reads as follows " All stores and materials brought to the site shall become and remain the property of the Government and shall not be removed off the site without the prior written approval of the G.E. But whenever the works are finally completed, the contractor shall at his own expense forthwith remove from the site all surplus stores and m....

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....der, the Tribunal found as a fact that the assessee had no control over the materials supplied by the military authority. It also held that the materials supplied by the Department were utilised by the assessee in the works and thus the assessee had no profit from the materials supplied by the Department. The finding of fact thus was that there was no element of profit arising out of the works con....