TaxTMI 
TaxTMI 
1975 (4) TMI 6
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....er, on the facts and in the circumstances of the case, when the accounts were admittedly defective the assessee's books of account were liable to be rejected and estimate was called for ? " The years of assessment are 1967-68, 1968-69 and 1969-70. The assessee undertakes execution of contracts and a large proportion of its work is executed through sub-contractors. In regard to the works undertaken by sub-contractors, under the agreements, the assessee was entitled to five per cent. of the net receipts. The Income-tax Officer completed the assessment by calculating the income of the assessee on adoption of five per cent. in regard to the works done through sub-contractors and by adopting 121 per cent. rate on the receipts relating to contr....
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....t for such works the appellant was entitled to 5 per cent. of the total value of the bills. The value of contracts executed by the appellant itself in each of the years is quite small compared to the value of contract works executed by the sub-contractors. Thus, for instance, in the assessment year 1967-68, the value of the bills received on account of the execution of contracts on own account was only Rs. 5,30,776 as against the gross receipts of Rs. 60,92,958, in the assessment year 1968-69, the value of own contract work was Rs. 8,40,740 as against the gross receipts of Rs. 43,64,302 and in the assessment year 1969-70, the value of contracts on own account amounted to Rs. 2,40,767 against the total value of bills at Rs. 6,67,094. So far ....