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TMI Blog1979 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... (2-3-78)-This is a reference made by the Income-tax Appellate Tribunal under orders of this court. The assessee is a military contractor. During the accounting period relevant to the assessment year 1964-65, the assessee took three M.E.S. contracts. The ITO found that the expenditure of the assessee was not supported by vouchers and he detected some other mistakes also in the accounts. After appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision Bench of this court in Brij Bhushan Lal v. CIT [1971] 81 ITR 497 (Punj) took the view that where the assessee does not produce his accounts to satisfy the ITO so as to enable him to assess actual profits or income earned by him from contracts and leaves it to the officer to determine the same on the basis of estimate, the percentage of profit is not determined with reference to each item of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 732 (Guj), Addl. CIT v. Trikamji Punia & Sons [1977] 106 ITR 597 (AP) [FB] and CIT v. J. S. Serwarey [1977] 107 ITR 566 (Gau). The main ground, on which the above mentioned authorities are based, is that the tax has to be levied on the income, which would, in turn, mean the profit. The value of the goods, which were supplied by the Government and or which an amount was deducted by the Government f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been referred for the decision is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in confirming the order of the Appellate Assistant Commissioner that price of stores supplied by Government was not to be included while applying the flat rate to the assessee's contract receipts?" The Division Bench before whom the matter was first p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the works undertaken by the contractor. Learned, counsel for the parties are agreed that no controversy now exists and the decision of their Lordships of the Supreme Court in Brij Bhushan Lal Parduman Kumar's case [1978] 115 ITR 524, completely governs the present case as well. Following the decision we return the answer to the question referred in the affirmative, that is, in favour of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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