1985 (4) TMI 10

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..... of the contract work should be excluded from the gross receipts in determining the net profit by the application of rate ? " The reference application has been filed by the Commissioner of Income-tax, Bihar, Patna, and Mr. B. P. Rajgarhia, learned counsel for the Revenue, has not disputed the other findings of the Tribunal and wants the answer only to the question relating to the contract with the Housing Department of the Government of Bihar. He has also submitted that the question relating to the profit from contract with Bokaro Steel Ltd. is not in dispute, as from the order of the Tribunal, it is evident that there has been no deduction relating to the cost of materials for Bokaro Steel Ltd. As regards the contract for Patratu Thermal .....

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..... 766 and the value of materials deducted is Rs. 25,295 and thus the net payment is Rs. 85,471, on which the assessee had shown a net profit of Rs. 8,912 which is more than 10%. The Appellate Assistant Commissioner, in view of the reasons given in connection with the works done under the Patratu Thermal Power Plant Works, held that the value of the materials should be deducted and only on a net payment of Rs. 85,471, profit should be estimated. He held that the assessee had himself shown a profit of more than 10% and so he accepted the profit shown by the assessee. The Appellate Tribunal only mentioned the facts relating to the Housing Department of the Government of Bihar and accepted the finding of the Appellate Assistant Commissioner. Howe .....

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..... on is answered in favour of the assessee and against the Revenue. However, I refuse to answer the question relating to the contract of the assessee with the Housing Department of the Government of Bihar. The Appellate Tribunal will record a finding whether the Housing Department of the Government of Bihar had control over the materials supplied to the assessee and that the assessee had no control over materials supplied by the Housing Department of the Government of Bihar. In deciding this matter, the Appellate Tribunal will keep in view the law laid down by the Supreme Court in the case of Brij Bhushan Lal Parduman Kumar v. CIT [1978] 115 ITR 524 and of this court in Ramesh Chandra Chaturvedi v. CIT [1980] 121 ITR 116. There will be no or .....

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