M/s R..F. Network, Bhopal V. The ACIT, 3(1), Bhopal

CO 57/IND/2011

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7211 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 19-04-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 07-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Keywords: Sale consideration of property below Jantri Value; Transfer pricing; International transaction
• Section: 92C; 92E; 10B; 147

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO. 283/IND/2011 A.Y. 2004-05 ASSTT. COMMISSIONER OF INCOME TAX 3(1), BHOPAL :: APPELLANT VS R.F. NETWORK BHOPAL PAN AABCR -7253G :: RESPONDENT CO NO. 57/IND/2011 ARISING OUT OF ITA NO. 283/IND/2011 R.F. NETWORK BHOPAL :: OBJECTOR VS ASSTT. COMMISSIONER OF INCOME TAX 3(1), BHOPAL :: RESPONDENT 2 DEPARTMENT BY SHRI ARUN DEWAN ASSESSEE BY SHRI AJAY CHHAJED DATE OF HEARING 16.04.2012 DATE OF PRONOUNCEMENT 19.04.2012 O R D E R PER JOGINDER SINGH , JUDICIAL MEMBER THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 6.7.2011 PASSED BY THE LEARNED FIRST APPELLATE AUTH ORITY, BHOPAL, ON GROUND THAT ON THE FACTS AND IN THE CIRCUMSTANCE S OF THE CASE, THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITI ON OF RS.41,10,307/- MADE ON ACCOUNT OF DISALLOWANCE OF E XEMPTION U/S 10B OF THE INCOME TAX ACT, 1961 AS THE ASSESSEE IS SIMPLY DOING JOB WORK. THE ASSESSEE IS ALSO IN CROSS OBJEC TION. 2. DURING HEARING, WE HAVE HEARD SHRI ARUN DEWAN, L EARNED SENIOR DR AND SHRI AJAY CHHAJED, LEARNED COUNSEL FO R THE ASSESSEE. MR. DEWAN DEFENDED THE ASSESSMENT ORDER W HEREAS THE LEARNED COUNSEL FOR THE ASSESSEE DEFENDED THE IMPUG NED ORDER. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PER USED THE MATERIAL AVAILABLE ON RECORD. THE FACTS IN BRIEF A RE THAT THE ASSESSEE, A PRIVATE LIMITED COMPANY, IS REGISTERED AS 100% EXPORT ORIENTED UNIT. THE GRIEVANCE OF THE REVENUE PERTAIN S TO DELETING 3 THE ADDITION OF RS.41,10,387/- ON ACCOUNT OF DISALL OWANCE OF EXEMPTION U/S 10B OF THE ACT. THE ASSESSEE AFTER CL AIMING EXEMPTION FOR THE INCOME OF RS.44,51,644/- DECLARED NIL INCOME IN ITS RETURN FILED ON 24.9.2004. SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS REOPENED U/S 147 FOR THE REASONS STATE D IN THE ASSESSMENT ORDER. THE ASSESSMENT UNDER SECTION 143( 3) OF THE ACT WAS COMPLETED AT AN INCOME OF RS. 3,41,260/- ON 11.12.2006. THE LEARNED AO WAS OF THE VIEW THAT TH E CLAIMED EXEMPTION U/S 10B IS NOT ALLOWABLE TO THE ASSESSEE BECAUSE THE ASSESSEE IS MERELY CONVERTING SEMI-KNOCK DOWN UNITS INTO A SINGLE UNIT WHICH IS MERELY A JOB WORK. THE AGGRIEV ED ASSESSEE PREFERRED APPEAL BEFORE THE LEARNED CIT(A) WHO VIDE IMPUGNED ORDER HELD AS UNDER :- I HAVE GONE THROUGH THE ASSESSMENT ORDER, THE SUBMISSIONS MADE BY THE LD. AR AND THE REMAND REPORT OF THE AO WHICH ARE PLACED ON RECORD. RELYING ON THE ORDER OF MY LD. PREDECESSOR ON THIS ISSUE FOR A.Y. 2002-03 AND ALSO THAT OF THE HONBLE JURISDICTIONAL TRIBUNAL, INDORE, I HAD DECIDED THIS ISSUE IN FAVOUR OF THE APPELLANT IN A.Y. 2007-08 VIDE APPEAL NO. CIT(A)-II/BPL/IT- 133/09-10. AS THE DECISION OF THE JURISDICTIONAL TRIBUNAL IS BINDING ON THE LOWER AUTHORITY, I AM OF THE CONSIDERED VIEW AND HOLD THAT THE APPELLANT COMPANY IS A MANUFACTURING UNIT ENTITLED TO EXEMPTION U/S 10B OF THE IT ACT, 1961. HENCE, THE ACTION OF THE AO IN DENYING THE SAID EXEMPTION IS HELD TO BE UNJUSTIFIED AND THE 4 ADDITION MADE BY THE AO OF RS. 41,10,387/- IS DELETED. FOR THIS PURPOSE, RELIANCE IS PLACED IN CASE OF UNION OF INDAI VS. KAMALAKSHI FINANCE CORPORATION LTD. (1991) 53 ELT 433 SUPREME COURT & AGRAWAL WAREHOUSING LEASING LIMITED V. CIT 257 ITR 235 (MP) & PRASAD & CO. VS. DCIT 43 ITD 93 (HYD) WHEREIN IT HAS BEEN HELD THAT THE DECISION OF THE JURISDICTIONAL TRIBUNAL IS BINDING ON THE LOWER AUTHORITIES. THUS, GROUND NOS. 5 TO 10 ARE DECIDED IN FAVOUR OF THE APPELLANT . 4. IF THE TOTALITY OF FACTS MENTIONED IN THE ASSESS MENT ORDER, IMPUGNED ORDER AND THE ASSERTION MADE BY THE LEARNE D RESPECTIVE COUNSEL ARE KEPT IN JUXTAPOSITION AND ANALYSED, WE FIND THAT A SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THIS BENCH OF THE TRIBUNAL AND VIDE ORDER DATED 18.10.2011 THE TRIB UNAL HELD AS UNDER :- THIS IS AN APPEAL BY THE REVENUE CHALLENGING THE ORDER DATED 17.8.2010 OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ON THE GROUND THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. FIRST APPELLATE AUTHORITY ERRED IN DELETING THE ADD ITION OF RS.58,90,684/- MADE ON ACCOUNT OF DISALLOWANCE OF EXEMPTION U/S 10B OF THE ACT AS THE ASSESSEE IS DOING JOB WORK ONLY. 2. DURING HEARING OF THIS APPEAL WE HAVE HEARD SHRI ARUN DEWAN, LEARNED SR. DR AND SHRI AJAY K. CHHAJED, LEARNED COUNSEL FOR THE ASSESSEE. THE CRUX OF ARGUMENTS ON BEHALF OF THE REVENUE IS IN SUPPORT TO THE ASSESSMENT ORDER WHEREAS THE LEARNED COUNSEL FOR THE ASSESSEE DEFENDED THE IMPUGNED ORDER. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON FILE. THE FACTS IN 5 BRIEF ARE THAT THE ASSESSEE COMPANY IS REGISTERED AS 100% EXPORT ORIENTED UNIT, FILED ITS RETURN WITH AUDITED ACCOUNTS, REPORT U/S 92E RELATING TO INTERNATIONAL TRANSACTIONS IN FORM NO. 3CCB AND REPORT U/S 10B OF THE ACT IN FORM NO. 56G BEFORE THE ASSESSING OFFICER SHOWING INCOME AT RS. 8,81,899/- ON ACCOUNT OF INTEREST ON FIXED DEPOSIT AND RS. 58,90,684/- CLAIMED EXEMPT U/S 10B OF THE ACT. THE AUDIT REPORT WITH COMPLETED AUDITED ACCOUNTS, THE TAX AUDIT REPORT WITH PARTICULARS AND REPORT U/S 10B FOR CLAIM OF DEDUCTION ALONG WITH TH E REPORT U/S 92E ARE AVAILABLE FROM PAGES 13 TO 27, 2 8 TO 41, 42 TO 44 AND 45 TO 51 RESPECTIVELY OF THE PAPER BOOK. THE CLAIM OF EXEMPTION U/S 10B OF THE ACT WAS DENIED ON THE GROUND THAT THE ASSESSEE IS MERELY DOING A JOB WORK. NOW THE QUESTION ARISES WHETHER THE JOB WORK DONE BY THE ASSESSEE COMES UNDER THE PURVIEW OF MANUFACTURING. BEFORE ADVERTING FURTHER WE ARE SUPPOSED TO UNDERSTAND THE PROCESS OF MANUFACTURING ACTIVITIES CARRIED OUT BY THE ASSESSEE WHICH IS SUMMARISED AS UNDER :- A) HI TECH ELECTRONICS FILTERS (LD. CIT(A), CRYST AL & CERAMIC) AND RF ASSEMBLIES ARE MANUFACTURED. B) THEY ARE TUNED TO THE SPECIFIC REQUIREMENTS OF CLIENTS, TESTED TO THE STRINGENT SPECIFICATIONS & T HEN FINALLY CHECKED & PROPERLY PACKED & EXPORTED. C) FOLLOWING STEPS ARE TAKEN:- IN EACH CONSIGNMENT LOOSE DIFFERENT PARTS IN THE FO RM OF KITS ARE IMPORTED SUCH AS INSULATED WIRE :- THESE ARE LIKE DIFFERENT TYPE OF INSULATED WIRE AND ARE OF DIFFERENT COLOURS. TOROIDS :- THESE ARE OF DIFFERENT TYPE MADE OF CERA MIC & ARE OF MANY TYPE OF THICKNESS & IN DIAMETER . LEADED CAPACITORS & CHIP CAPACITORS :- THESE ARE OF MANY TYPES, SIZES AND OF DIFFERENT VALUE, ST ARTING FROM A CHIP CAPACITORS OF SIZE LMM X LMM TO BIG CERAMIC CAPACITORS OF DIFFERENT SIZE & VALUE. RESISTANCES:- WHICH ARE OF DIFFERENT TYPES, VALUE & SIZE ( OHMS) . CRYSTAL :- WHICH ARE ALSO OF DIFFERENT TYPES, SIZE & DIFFERENT FREQUENCIES. PRINTED CIRCUIT BOARD :- 6 WHICH ARE ALSO OF DIFFERENT TYPES, SIZE ON WHICH DI FFERENT ITEMS ARE MOUNTED . CAN & COVERS :- WHICH ARE OF DIFFERENT TYPES, SIZES IN WHICH THE COMPLETE ASSEMBLY IS PACKED. RTV :- WHICH IS A WHITE ADHESIVE TO FIX THE COILS. TRIMMERS :- WHICH ARE ALSO OF DIFFERENT TYPES, SIZE S AND ARE USED TO TUNE THE FILTERS OF DIFFERENT FREQUENCI ES AS PER OUR CUSTOMER SPECIFICATIONS. ALSO INCLUDED ARE MANY TYPES OF SOLDER WIRE , BUS WIRE , SOLDER PASTE, GRD PINS AND MANY OTHER TOOLS USED IN MANUFACTURING. THESE ARE THE PARTS WHICH ARE SENT BY THE PARENT COMPANY NETWORKS INTERNATIONAL CORP, KANSAS CITY, USA. 2.1 THESE ITEMS WERE PACKED IN A BOX BY AIR FREIGHT PAID BY NIC AT INDIRA GANDHI AIRPORT, NEW DELHI. THEY ARE OPENED, CHECKED, INSPECTED AND REPACKED & SEALED BY THE OFFICERS OF CUSTOMS DEPT, GOVT OF IND IA. THE SEALED BOX COMES TO R.F. NETWORK, BHOPAL, AND VERIF IED BY THE OFFICER OF CUSTOMS DEPT OF BHOPAL, WHERE THE WHOLE AREA IS A PRIVATE CUSTOM BONDED WAREHOUSE. 2.2 THEN THE BOX IS OPENED AND VERIFIED IN RESPECT OF THE CONTENTS IN THE BOX AS PER THE BILL OF ENTRY AND IN VOICE , AND THEN IT IS KEPT IN THE WAREHOUSE FROM WHERE THE Y ARE ISSUED FOR THE PRODUCTION . 2.3 ONCE THE RAW MATERIALS IN FORM OF LOOSE PARTS A RE RECEIVED THEN THE MANUFACTURING ACTIVITY STARTS. IT MAY BE NOTED THAT THE PARENT COMPANY NETWORKS INTERNATIONA L CORPORATION , 15237 BROADMOOR , OVERLAND PARK, KANSAS CITY 66233 , USA, MANUFACTURES HUNDRED / THOUSANDS OF DIFFERENT TYPE OF FILTERS, OSCILLATORS , R.F.ASSEMBLIES ETC. A CATALOGUE OFNIC FOR YOUR KIND INFORMATION, PERUSAL & RECORD IS ENCLOSED. 2.4 MANUFACTURING PROCESS STARTS AFTER TAKING INSUL ATED WIRE OF REQUIRED GUAGE , COLOUR & TAKE TORRIODS OF DIFFERENT SIZES & DIAMETER & MAKE COILS. THIS COIL MADE GOES TO SOLDER POT, WHERE THE ENDS ARE TINNED AS PER SPECIFICATIONS. 2.5 THIS TINNED COIL AND OTHER PARTS GO TO ASSEMBLY LINE, WHERE ON THE PC BOARD THESE COILS ARE SOLDERED. 2.6 THEN MANY OTHER PARTS ARE MOUNTED ( SOLDERED) O N THE PCB , LIKE TRIMMER, CRYSTAL RESISTANCE, CHIP & CERAMIC 7 CAPACITORS ETC. 2.7 AFTER THE ASSEMBLY IT IS READY AND GOES TO RTV SECTION WHERE RTV INJECTION PROCESS IS DONE. 2.8. AFTER THIS THE FILTERS ARE PRE - TUNED TO TH E STRINGENT SPECIFICATIONS OF THE CUSTOMER ON A NETWORK ANALYZE R. ASSEMBLY THEN IS PUT ON THE CAN & COVERED AND SEALE D. THEN FILTERS ARE FINALLY TUNED. 2.9 THE WHOLE PROCESS HAS MANY CHECK POINTS WHERE TESTS ARE PERFORMED. WHEN COILS ARE MADE THEY ARE TO HAVE SPE CIFIC NUMBERS OF TURNS , THEY MAY HAVE ONE WIRE, TWO WIRE S, THREE WIRES, THEY ARE TESTED THAT EXACT NO. OF TURN S & TYPE OF WIRE HAS BEEN USED & THEN THEY ARE TINNED TO SPECIFICATION . 2.10 ASSEMBLY IS TESTED BY-VISUALLY, UNDER MAGNIFYI NG LENS & VISION MICROSCOPE TO SEE THAT EACH PART IS SEPARATE , NOT TOUCHING TO EACH OTHER & SOLDER IS PERFECT & THERE IS NO DRY SOLDER. 2.11 EACH BATCH IS PUT IN HOT OVEN AT + 92C TO 95 C THEN TO COLD CHAMBER AT 450C TO -55C. THIS HOT COLD CYCLE IS REPEATED 5 TIMES FOR 1 HR EACH. 2.12 ALL FILTERS ARE PUT IN HOT WATER TEST WHERE IF THERE IS ANY LEAK IT CARRIES OUT & RE - SEALING IS DONE . 2.13 LASTLY, VISUAL CHECK FOR QUALITY & LOOK & POLISHING IS DONE & THEN THEY ARE SPECIALLY LABELED & PACKED FOR EXPORT . (PAGE 52 TO 100) 3. ALL THESE MANUFACTURING PROCESS, TUNING & TESTING PROCESS ARE GOVERNED BY THE DOCUMENTATION. FOR EACH ASSEMBLY BATCH THERE IS A ' TRAVELLER '. TRAVELLER MEANS A PAGE WHERE EACH PROCESS WHEN DONE IS CLEARL Y WRITTEN BY DATE & TIME IS MENTIONED AND THEN WE EXP ORT THE ITEM WITH ONE COPY OF TRAVELLER TO PROVE THAT A LL THE STEPS HAVE BEEN TAKEN. A COPY OF TRAVELLER IS A TTACHED. 3.1 FURTHER FOR EACH QUALITY CHECK THERE ARE SPEC IFIED STEPS WHICH ARE CLEARLY MENTIONED IN THE MANUFACTURER'S SHEETS. THEY HAVE TO BE FOLLOWED. ALL THE QUALITY TEST ARE CARRIED OUT TO THESE SPECIFICATIONS. 3.2 ALSO R.F.NETWORK PVT LTD. HAS RECEIVED ISO CERTIFICATION ISO 9001: 2000 AND THEREFORE THE COMP ANY 8 HAS TO FOLLOW ALL THE STEPS AS PER ISO CERTIFICATE STANDARDS 4. IF THE ABOVE PROCESS IS ANALYSED, ONE FACT IS CLEARLY OOZING OUT THAT THERE IS A SYSTEMATIC ACTIV ITY FOR PRODUCTION OF GOODS. THE TRUE FOCUS IS FUNCTION AL AND THE DECISIVE TEST IS THE NATURE OF ACTIVITY. W E ARE ALSO SUPPOSED TO SEE WHETHER THE INCOME HAS BEEN DIRECTLY DERIVED FROM THE ACTIVITY OF MANUFACTURING. THE DERIVATION OF INCOME SHOULD BE GENERATED FROM THE ACTIVITY. IF THE AFORESAID PROC ESS IS FURTHER ANALYSED, WE FIND THAT THE NET PRODUCED/MANUFACTURED ITEMS ARE DIFFERENT FROM THE ORIGINAL/RAW MATERIAL. THEREFORE, CLEARLY IT IS A MANUFACTURING ACTIVITY. THE DECISIONS FROM HON'BLE APEX COURT IN THE CASE OF INDIA CINE AGENCIES V. CIT (2008) 175 TAXMAN 361, THOUGH FOR THE PURPOSES OF SECTION 80I, AND THE DECISION OF HON'BL E KARNATAKA HIGH COURT IN CIT V. DARSHAK LIMITED; 247 ITR 489, CIT V. JAMAL PHOTO INDUSTRIES (2006) 203 CTR 256 (MAD) CLEARLY SUPPORT OUR VIEW. SO FAR AS THE CONTENTION OF THE LEARNED DR THAT THE ASSESSEE IS MERELY DOING JOB WORK AND EXEMPTION U/S 10B IS CONCERNED, WE FIND THAT THE LANGUAGE USED IN SECTION 10B PROVIDES FOR EXEMPTION WITH RESPECT TO ANY PROFIT AND GAINS DERIVED BY THE ASSESSEE AND THE SAME IS NOT CONFINED TO PROFIT AND GAINS OF BUSINESS OR PROFESSION. THE MAIN EMPHASIS IS ON PROFIT AND GAINS WHICH ARE DERIVED BY A 100% EXPORT ORIENTED UNDERTAKING FROM THE EXPORT OF ARTICLES OR THINGS OR COMPUTER SOFTWARES FOR TEN CONSECUTIVE ASSESSMENT YEARS BEGINNING WITH THE ASSESSMENT YEAR RELEVANT TO THE PREVIOUS YEAR IN WHICH THE UNDERTAKING BEGINS TO MANUFACTURE OR PRODUCE ARTICLES OR THINGS OR COMPUTER SOFTWARE, AS THE CASE MAY BE, SHALL BE ALLOWED FROM THE TOTAL INCOME OF THE ASSESSEE. SUB-CLAUSE (III) TO EXPLANATION REGARDING MANUFACTURING INCLUDES (A) PROCESS OR (B) ASSEMBLING OR (C) RECORDING OF PROGRAMMES ON ANY DISC, TAP, PERFORATED MEDIA OR OTHER INFORMATION STORAGE DEVICE. IN VIEW OF THESE , WE FIND NO INFIRMITY IN THE STAND OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) AND CONFIRM THE SAME. 9 IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN IN THE PRESENCE OF LEARNED REPRESENTATIVES FROM BOTH THE SIDES AT THE CONCLUSION OF THE HEARING. IN THE AFORESAID ORDER, THE TRIBUNAL HAS ALREADY CO NSIDERED THE DIFFERENT PARTS, IN THE FORM OF KITS IMPORTED BY TH E ASSESSEE AND THE LOOSE PARTS, SO RECEIVED ARE ASSEMBLED AND THEN THE MANUFACTURING PROCESS STARTS AFTER TAKING INSULATED WIRE OF REQUIRED GAUGE, COLOUR OF DIFFERENT SIZES AND DIAME TER WHICH MAKES THE COILS. THE WHOLE MANUFACTURING PROCESS HA S BEEN MENTIONED IN THE IMPUGNED ORDER. FOR QUALITY CHECK , THE MANUFACTURING PROCESS UNDERGOES VARIOUS TESTS AND A LL THE QUALITY TESTS ARE CARRIED OUT TO THE REQUIRED SPECI FICATIONS. THE ASSESSEE HAS ALSO RECEIVED ISO CERTIFICATION. VARI OUS DOCUMENTS, SUBMITTED BEFORE THE CIT(A) REGARDING THE MANUFACTU RING PROCESSES WERE EXAMINED BY HIM WHICH WERE ALSO SUBM ITTED DURING ASSESSMENT PROCEEDINGS. THE ASSESSEE HAS MAD E ALL THESE DOCUMENTS AS PART OF THE PAPER BOOK WHICH HAVE BEEN PERUSED BY US. EVEN OTHERWISE, THE ASSESSEE COMPANY WAS GR ANTED PERMISSION AS 100% EOU FOR MANUFACTURING AND EXPORT OF ELECTRIC FILTERS AND ELECTRONIC ASSEMBLIES VIDE LET TER DATED 22.3.2011 BY THE MINISTRY OF COMMERCE. THE VARIOUS ASPECTS 10 HAVE BEEN DULY CONSIDERED IN FAVOUR OF THE ASSESSEE BY THE LEARNED CIT(A). THE TRIBUNAL IN THE AFORESAID ORDE R HAS ALREADY CONSIDERED VARIOUS JUDICIAL PRONOUNCEMENTS, THEREFO RE, FOR THE SAKE OF BREVITY, THE SAME ARE NOT BEING REPEATED. T HE DECISIONS FROM HONBLE APEX COURT IN THE CASE OF LUCKY MINMAT (P) LIMITED VS. CIT; 245 ITR 830 AND STAR PAPER MILLS LIMITED V S. COLLECTOR OF CENTRAL EXCISE; 185 ITR 575 FORTIFIES THE CASE O F THE ASSESSEE. IN THE CASE OF CIT V. ORACLE INDIA SOFTWARE INDIA L IMITED; 320 ITR 546, THE HONBLE APEX COURT HELD THAT DUPLICATE SET OF BLANK CD WITH MASTER MEDIA OF THE SOFTWARE IS A MANUFACTURIN G PROCESS. EVEN OTHERWISE, THE PROVISION IN THE TAXING STATUTE , GRANTING INCENTIVE, FOR PROMOTING GROWTH AND DEVELOPMENT, SH OULD BE CONSTRUED LIBERALLY AS WAS HELD IN BAJAJ TEMPO LIMI TED VS. CIT; 62 TAXMAN 480 (SC). THE AFORESAID ORDER OF THE TRIB UNAL, ON IDENTICAL ISSUE, HAS ATTAINED FINALITY AS NO CONTRA RY DECISION WAS BROUGHT TO OUR NOTICE, THEREFORE, WE FIND NO INFIRM ITY IN THE IMPUGNED ORDER. IT IS AFFIRMED, RESULTING INTO DISM ISSAL OF APPEAL OF THE REVENUE. 4. SO FAR AS CROSS OBJECTIONS OF THE ASSESSEE ARE C ONCERNED, SINCE WE HAVE DECIDED THE APPEAL OF THE REVENUE ON MERIT IN FAVOUR OF THE ASSESSEE, THEREFORE, THESE HAVE REMAI NED FOR 11 ACADEMIC INTEREST ONLY, THEREFORE, CROSS OBJECTION OF THE ASSESSEE IS ALSO DISMISSED. FINALLY, THE APPEAL OF THE REVENUE AS WELL AS THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 16.4.2012. SD SD (R.C.SHARMA) (JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL ME MBER DATED: 19.4.2012 COPY TO: APPELLANT, RESPONDENT, CIT, CIT(A), DR, GU ARD FILE DN/-