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TMI Blog1985 (4) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case, the Tribunal was justified in confirming the inclusion of the cost of materials supplied by the M.E.S. authorities to the assessee-firm in the assessee's total receipts and applying a net rate of profit at 10% on the total receipts for the purposes of computing the assessee's income for the assessment years 1968-69 and 1969-70 ? " Learned counsel for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for use in the construction should not be utilised for determining the income. Learned counsel for the Department urged that the cases were all distinguishable as in the present case, the materials supplied by the M.E.S. Department had been sold to the assessee. We find that that was the case also in the three appeals before the Supreme Court. There also the material had been sold to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey differed from the Supreme Court's view. Those judgments are N. K. Sengupta v. CIT [1978] 113 ITR 413, decided by the Calcutta High Court, New India Corporation Co. v. CIT [1979] 120 ITR 763, decided by the Calcutta High Court, CIT v. Civil Engineering Co. [1982] 136 ITR 38, decided by the Allahabad High Court and Ramesh Chandra Chaturvedi v. CIT [1980] 121 ITR 116, decided by the Patna High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts do not differ from the Supreme Court's view and if they do, they were impliedly overruled by the Supreme Court. In the present case, we are dealing with an M.E.S. contractor, where it appears that the Government had supplied some material for incorporation in the works at a fixed price, which was adjustable against the contract. In such a case, the tender price would not include any profit on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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