1976 (6) TMI 44

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..... ituted for the purpose of carrying on business of contracts. Its main contract was to supply labour but it also undertook construction work on a small scale. The total receipts in the accounting year accounted to Rs. 72,330 and on the basis of the accounts maintained by the assessee, it declared the income of Rs. 5,610. This worked out to about 7.7% on the receipts. The Income-tax Officer was of t .....

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..... s on a small turnover of Rs. 72,330 at 7.7% should not have been considered unreasonable. The Department has not been able to point out any serious mistake except the usual mistake that the payments were not vouched. This is a firm of four partners and neither of them is liable to tax nor the firm. Therefore, the question of evading payment of tax may not be the consideration is showing less profi .....

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