1982 (3) TMI 57

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..... 256(1) of the I.T. Act, 1961, and the following question has been referred by the I.T. Appellate Tribunal, Delhi Bench-A, for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that profit on the cost of materials supplied by the Government could be assessed only if the assessee had calculated such profit while ....

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....ars cement, steel and bricks of the value of Rs. 4,57,033 and Rs. 3,00,000 in the two years, respectively. The controversy relates to the question of assessing any profit on the value of these materials. The assessee's case before the ITO was that since it had not earned any profit on the value of the materials received by it from the Govt., no profit should be charged from it. That contention did....

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....inasmuch as the supplies had been made at controlled rates. Reliance was placed on a decision of the Punjab and Haryana High Court in Brij Bushan Lai v. CIT[1971] 81 ITR 497 and of this court in Goswami Brothers v. CIT [1972] UPTC 565. On a consideration of the case law cited at the bar the Tribunal came to the conclusion that the decision of this question depends ultimately on the terms of the te....

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....le profit on such value. If, on the other hand, it is found that the assessee was under an understanding that the department concerned would supply the required materials to it for the execution of those contracts and the assessee adjusted its rates on that basis, then there would not arise any occasion for estimating any profit on the value of the materials supplied. For that reason, the Appellat....