1978 (3) TMI 115

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..... 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 not earned any profit on these materials and the same should not be considered while es .....

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..... ere 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 that the value of cement was not to be considered for working out the contractors pr .....

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..... oswamy 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 tender had been submitted. On the facts of the present case, this decision will not s .....

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