SRICHAND AGARWALA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 256(2) of the I.T. Act, 1961 (hereinafter called the "Act"). The following question has been referred for the opinion of this court:

(2.) THE petitioner-firm carries on business as works contractor being engaged in construction of buildings, bridges and roads. According to the petitioner, during the assessment year 1975-76, the petitioner had received a sum Rs 5,38,898 towards gross bill whereas the actual net receipt was only Rs. 4,01,446. A sum of Rs. 1,37,402 was deducted by the contractee towards the cost of materials supplied to the petitioner at the time of execution of the work.