1978 (3) TMI 115

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....fied in estimating profit on the cost of material supplied to it by the Government. 2. The assessee is a firm carrying on contract business. During the year under consideration, it had executed Storm Water Drainage Scheme contracts. For the execution of these contracts, it had been supplied materials of Rs. 1,43,730 by the Haryana Government. The ITO rejected the assessee's claim that it had no....

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.... contract agreed to supply cement and some other materials to the assessee. Tenders were invited by the Government and submitted by the assessee on that basis. The authorities below were, therefore, not justified in taking into account the cost of these materials for estimating the profit of the assessee. Referring to the analysis of rates at page 2 of its paper book Shri Bajaj further pointed out....

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....s (4) case also support the assessee's claim. The Allahabad decision in the case of Goswamy Bros (2). relied upon by Shri Shukla also supports the assessee's case. The observations in that case also show that profit on the cost of materials supplied by the Government has to be computed only in those cases where the cost of materials has been included by the assessee in the total amount, for which ....