DAS AND COMPANYMPANY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this case at the instance of the assessee the following two questions have been referred to us for our opinion :

(2.) IN this reference we are concerned with assessment years 1968 -69 and 1969 -70. The assessee is a registered partnership firm and carried on business as contractors. The Income -tax Officer while working out the figure of the total receipts of the assessee for each of these two assessment years under reference included the amount representing the cost of materials supplied by the Government for the construction work in each of these two years under reference and thereafter applied the percentage rate to these total receipts. The Tribunal held that these amounts were includible and held that the cost of materials supplied by the Government was an integral part of the trading receipts and confirmed the orders of the Income -tax Office and of the Appellate Assistant Commissioner who upheld that view.

(3.) THE said clause 12 also provided.