Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Liability to tax income or profits |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Liability to tax - Whether in a lump sum contract, where the stores and materials are supplied by the Government, the cost thereof was liable to be taken into account while estimating the income or profits of the assessee contractor - Best Judgment assessment, principle to be followed. The appellant assessees are Military Engineering Services' contractors and as such carry on business of executing contracts and work on behalf of the Government. Their contracts are "Lumpsum contracts" where the department supplies the materials at fixed rates. The revenue was of the opinion that the cost of the materials supplied by the military authorities was liable to be included before applying the fiat rate to the assessee's receipts and estimating the profits for the purposes of tax liability. The High Court of Punjab and Haryana on a reference at the instance of the Revenue confirmed it following it own earlier Judgments in the case of Brij Bhushan Lal v. C.l.T. Delhi, (1971) 81 I.T.R. 497. |
Judge | Hon'ble Mr. Justice V.D. Tulzapurkar |
Neutral Citation | 1978 INSC 205 |
Petitioner | Brij Bhushan Lal Parduman Kumar Etc. |
Respondent | Commissioner Of Income Tax, Haryana, Himachal Pradesh And New Delhi-iii |
SCR | [1979] 2 S.C.R. 16 |
Judgement Date | 1978-10-06 |
Case Number | 1701-1703 |
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