COMMISSIONER OF INCOME TAX Vs. MOHAN LAL KANSAL

JUDGEMENT

(1.) THE ITO completed the assessment for the asst. yr. 1970-71 on 15th Dec., 1970. However, on 19th Jan., 1973, in view of the law laid down in Brij Bushan Lal vs. CIT (1971) 81 ITR 497 (P&H), he reopened the assessment and issued notice under s. 148, r/w s. 147(b) of the IT Act, 1961, ('the Act'). The ITO in his order dt. 19th Nov., 1974 completed the fresh assessment and included in the income of the assessee Rs. 11,575 as being his profit on the basis of 10 per cent profit on the value of stores supplied by MES to the assessee for the execution of the contract which he had entered into.

(2.) THE AAC sustained the said order of the ITO, However, on an appeal, the Tribunal by its order dt. 13th Dec., 1976 set aside the orders of the ITO and that of the AAC holding that Rs. 11,575 treated as profit are not includible.

(3.) THE question has to be answered in the affirmative in favour of the assessee and against the Revenue in view of the Supreme Court decision reported as Brij Bhushan Lal Parduman Kumar vs. CIT 1978 CTR (SC) 134 : (1978) 115 ITR 524 (SC), which has expressly overruled Brij bhushan Lal's case (supra) on the basis of which the assessment was reopened by the ITO for including Rs. 11,575 in the income of the assessee. No order as to costs.