Amarshiv Construction Pvt. Ltd., Baroda V. The Dy.CIT., Circle-1(1), Baroda

ITA 3366/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6531 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 01-06-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 22-12-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B L YADAV
• Assessee Lawyers: M K PATEL

Judgement Text

- 1 - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C AHMEDABAD BEFORE S/SHRI M.K. SHRAWAT, JM AND D.C.AGRAWAL, AM AMARSHIV CONSTRUCTION (P) LTD., 14, ATUL PARK SOCIETY, KARELIBAUG, BARODA-390 018. VS. DY. CIT, CIR-1(1), BARODA. (APPELLANT) .. (RESPONDENT) APPELLANT BY :- SHRI M. K. PATEL, AR RESPONDENT BY:- SHRI B. L. YADAV, SR.DR O R D E R PER D.C. AGRAWAL, ACCOUNTANT MEMBER . THIS IS AN APPEAL FILED BY THE ASSESSEE RAISING FO LLOWING GROUNDS:- (1) THE LD. CIT(A) ERRED IN HOLDING THAT THE RETENTION MONEY OF RS.89,26,785/- HAD ACCRUED TO THE APPELLANT COMPANY DURING THE PREVIOUS YEAR RELEVANT TO ASST. YEAR 2006-07. (2) THE LD. CIT(A) FURTHER ERRED IN CONFIRMING THE ADDI TION OF RS.89,26,787/- MADE ON ACCOUNT OF REJECTION OF THE CLAIM OF THE APPELLANT COMPANY FOR DEDUCTION OF RETENTION MONEY. (3) THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.10,000/- BEING VOLUNTARY RETIREMENT EXPENSES CLA IMED BY THE APPELLANT COMPANY. 2. THE ASSESSEE FIRM IS ENGAGED IN THE CONSTRUCTION OF ROADS, DAMS, CANALS, STRUCTURAL WORKS ETC. THE AO PROPOSED ADDIT ION IN RESPECT OF ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 2 RETENTION MONEY OF RS.89,26,785/- WHICH WAS DEBITED IN THE PROFIT AND LOSS ACCOUNT. THIS AMOUNT REPRESENTED RETENTION MON EY/SECURITY DEPOSIT RETAINED BY THE PERSONS FOR WHOM ASSESSEE HAS UNDER TAKEN CONTRACT WORK DURING THE YEAR. SIMILARLY, ASSESSEE COMPANY HAD AL SO ADDED A SUM OF RS.8,35,492/- TO THE PROFIT AND LOSS ACCOUNT BEING THEIR MONEY RETAINED IN EARLIER YEARS BEING RETENTION MONEY RECEIVED BACK D URING THIS YEAR. IT WAS EXPLAINED TO THE AO THAT FOLLOWING PARTIES HAD RETA INED FOLLOWING SUM DURING THE YEAR :- SL.NO. NAME OF THE WORK AMOUNT RS. 1 PRIME MINISTER GRAMIN SADAK YOJNA GUJARAT RS.4442 32/- 2 MISC.ROAD WORK (GUJARAT) RS.903626/- 3 RAJPIPLA NETRANG ROAD RS.24252/- 4 VADOLI ROAD WORK RS.452500/- 5 GIDC BHARUCH RS.303599/- 6 JAGPURA APPRO. RD. RS.151992/- 7 TAMILNADU ROAD WORK RS.6646584/- RS.5926785/- FOLLOWING EXPLANATION WAS FURNISHED IN RESPECT OF T HE CLAIM:- FROM THE TOTAL RECEIPTS SHOWN IN THE ACCOUNTS AN A MOUNT OF RS.8926785/- HAS BEEN RETAINED BY THE GOVERNMENT AS THE RETENTION MONEY/ SECURITY DEPOSIT. AS PER THE TERMS OF THE CONTRACT THE MONEY IS WITHHELD BY THE GOVERNMENT PENDING VERIFICATION OF THE SATISFACTORY COMPLETION OF THE WORK FOR WHICH T HE PAYMENT RELATED. THE RETENTION MONEY DOES NOT ARISE OR THE COMPANY I S NOT ENTITLED TO RECEIVE ANY PART OF THE RETENTION MONEY TILL THE SATISFACTORY COMPLE TION OF THE WORK AND REMOVABLE OF DEFECTS AND PAYMENT OF DAMAGES IF ANY. RELIANCE IS PLACED ON THE DECISION IN THE CASE OF CIT VS. SIMPLEX CONCRETE PILES (P) LTD. 45 TAXMA N 370 WHEREIN THE HON. CALCUTTA HIGH COURT HAD HELD THAT - HAVING REGARD TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW THAT ON THE TERMS AND CONDITIONS OF THE CONTRACT AS EXAMINE D BY THE TRIBUNAL IS CANNOT BE HELD THAT EITHER 10 PERCENT OR 5 PERCENT AS THE CAS E MAY BE BEING THE RETENTION MONEY BECAME LEGALLY DUE TO THE ASSESSEE ON THE COMPLETIO N OF THE WORK. ONLY AFTER THE ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 3 ASSESSEE FULFILLS THE OBLIGATIONS UNDER THE CONTRAC T, THAT THE RETENTION MONEY WOULD BE RELEASED AND THE ASSESSEE WOULD ACQUIRE THE RIGHT T O RECEIVE SUCH RETENTION MONEY. THEREFORE, ON THE DATE WHEN THE BILLS WERE SUBMITTE D, HAVING REGARD TO THE NATURE OF THE CONTRACT NO ENFORCEABLE LIABILITY ACCRUED OR AR OSE AND ACCORDINGLY IT CANNOT BE SAID THAT THE ASSESSEE HAD ANY RIGHT TO RECEIVE THE ENTIRE AMOUNT ON THE COMPLETION OF WORK OR ON SUBMISSION OF BILLS. THE ASSESSEE HAD NO RIGHT TO CLAIM ANY PART OF THE RETENTION MONEY TILL THE VERIFICATION OF THE SATISF ACTORY EXECUTION OF THE CONTRACT. RELIANCE IS PLACED ON THE FOLLOWING DECISIONS : 1. JANATHA CONTRACT CO. VS. CIT (KERALA) 105 ITR 4 27 2. CIT VS. CHANANI BROTHERS (PATNA) 161 ITR 418 THE LD. AO DID NOT AGREE AND HELD THAT RETENTION MO NEY COULD NOT BE ALLOWED AS DEDUCTION AND IN THIS REGARD HE FOLLOWED THE DECISION OF THE TRIBUNAL FOR ASST. YEAR 1992-93 & 1993-94. 3. THE LD. CIT(A) ALSO CONFIRMED THE ORDER OF THE A O FOLLOWING THE ORDER OF THE TRIBUNAL IN ASST. YEARS 1992-93 & 1993 -94. 4. WE HAVE HEARD THE PARTIES. THE LD. AR WAS FAIR E NOUGH IN POINTING OUT THAT THE ISSUE HAS BEEN DECIDED AGAINST THE ASS ESSEE IN ASST. YEAR 1992-93 AND 1993-94 AND IN ASST. YEAR 2002-03 THE I SSUE HAS ALSO BEEN DECIDED AGAINST THE ASSESSEE IN ITA NO.1030/AHD/200 5 PRONOUNCED ON 22 ND AUGUST, 2008 WHEREIN THE TRIBUNAL HAS REPRODUCED F OLLOWING PORTION FROM THE DECISION REPORTED IN 88 ITD 381:- 35. WE MAY ALSO REFER TO CERTAIN PARAGRAPHS OF THE REVISED ACCOUNTING STANDARD (REVISED 2002) DEAL WITH RECOGNITION OF CONTRACT REVENUE AND EXPENSES. 21. WHEN THE OUTCOME OF A CONSTRUCTION CONTRACT CAN BE ESTIMATED RELIABLY, CONTRACT REVENUE AND CONTRACT COSTS ASSOC IATED WITH THE CONSTRUCTION CONTRACT SHOULD BE RECOGNIZED AS REVEN UE AND EXPENSES ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 4 RESPECTIVELY BY REFERENCE TO THE STAGE OF COMPLETIO N OF THE CONTRACT ACTIVITY AT THE REPORTING DATE. AN EXPECTED LOSS ON THE CONSTRUCTION CONTRACT SHOULD BE RECOGNIZED AS AN EXPENSE IMMEDIA TELY IN ACCORDANCE WITH PARAGRAPH 35. 22. IN THE CASE OF A FIXED PRICE CONTRACT, THE OUTC OME OF A CONSTRUCTION CONTRACT CAN BE ESTIMATED RELIABLY WHEN ALL THE FOL LOWING CONDITIONS ARE SATISFIED: (A) TOTAL CONTRACT REVENUE CAN BE MEASURED RELIABLY; (B) IT IS PROBABLE THAT THE ECONOMIC BENEFITS ASSOCIATE D WITH THE CONTRACT WILL FOLLOW TO THE ENTERPRISE; (C) BOTH THE CONTRACT COSTS TO COMPLETE THE CONTRACT AN D THE STAGE OF CONTRACT COMPLETION AT THE REPORTING DATE CAN BE ME ASURED RELIABLY; AND (D) THE CONTRACT COSTS ATTRIBUTABLE TO THE CONTRACT CAN BE CLEARLY IDENTIFIED AND MEASURED RELIABLY SO THAT ACTUAL CON TRACT COSTS INCURRED CAN BE COMPARED WITH PRIOR ESTIMATES. 24. THE RECOGNITION OF REVENUE AND EXPENSES BY REFE RENCE TO THE STAGE OF COMPLETION OF A CONTRACT IS OFTEN REFERRED TO AS THE PERCENTAGE OF COMPLETION METHOD. UNDER THIS METHOD, CONTRACT REVE NUE IS MATCHED WITH THE CONTRACT COSTS INCURRED IN REACHING THE STAGE O F COMPLETION, RESULTING IN THE REPORTING OF REVENUE EXPENSES AND PROFIT WHI CH CAN BE ATTRIBUTED TO THE PROPORTION OF WORK COMPLETED. THIS METHOD PROVI DES USEFUL INFORMATION ON THE EXTENT OF CONTRACT ACTIVITY AND PERFORMANCE DURING A PERIOD. 25. UNDER THE PERCENTAGE OF COMPLETION METHOD, CONT RACT REVENUE IS RECOGNIZED AS REVENUE IN THE STATEMENT OF PROFIT AN D LOSS IN THE ACCOUNTING PERIODS IN WHICH THE WORK IS PERFORMED. CONTRACT COSTS ARE USUALLY RECOGNIZED AS AN EXPENSE IN THE STATEMENT O F PROFIT AND LOSS IN THE ACCOUNTING PERIODS IN WHICH THE WORK TO WHICH THEY RELATE IS PERFORMED. HOWEVER, ANY EXPECTED EXCESS OF TOTAL CONTRACT COST S OVER TOTAL CONTRACT REVENUE FOR THE CONTRACT IS RECOGNIZED AS AN EXPENS E IMMEDIATELY IN ACCORDANCE WITH PARAGRAPH 35. 27. WHEN AN UNCERTAINTY ARISES ABOUT THE COLLECTIBI LITY OF AN AMOUNT ALREADY INCLUDED IN CONTRACT REVENUE, AND ALREADY R ECOGNIZED IN THE STATEMENT OF PROFIT AND LOSS, THE UNCOLLECTIBLE AMO UNT OR THE AMOUNT IN RESPECT OF WHICH RECOVERY HAS CEASED TO BE PROBABLE IS RECOGNIZED AS AN EXPENSE RATHER THAN AS AN ADJUSTMENT OF THE AMOUNT OF CONTRACT REVENUE. ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 5 31. WHEN THE OUTCOME OF A CONSTRUCTION CONTRACT CAN NOT BE ESTIMATED RELIABLY: (A) REVENUE SHOULD BE RECOGNIZED ONLY TO THE EXTENT OF CONTRACT COSTS INCURRED OF WHICH RECOVERY IS PROBABLE; AND (B) CONTRACT COSTS SHOULD BE RECOGNIZED AS AN EXPEN SES IN THE PERIOD IN WHICH THEY ARE INCURRED. AN EXPECTED LOSS ON THE CONSTRUCTION CONTRACT SHOUL D BE RECOGNIZED AS AN EXPENSE IMMEDIATELY IN ACCORDANCE WITH PARAGRAPH 35 . 32. DURING THE EARLY STAGES OF A CONTRACT IT IS OFT EN THE CASE THAT THE OUTCOME OF THE CONTRACT CANNOT BE ESTIMATED RELIABL Y. NEVERTHELESS, IT MAY BE PROBABLE THAT THE ENTERPRISE WILL RECOVER THE CO NTRACT COSTS INCURRED. THEREFORE, CONTRACT REVENUE IS RECOGNIZED ONLY TO T HE EXTENT OF COSTS INCURRED THAT ARE EXPECTED TO BE RECOVERED. AS THE OUTCOME OF THE CONTRACT CANNOT BE ESTIMATED RELIABLY, NO PROFIT IS RECOGNIZED. HOWEVER, EVEN THOUGH THE OUTCOME OF THE CONTRACT CANNOT BE E STIMATED RELIABLY, IT MAY BE PROBABLE THAT TOTAL CONTRACT COSTS WILL EXCE ED TOTAL CONTRACT REVENUE.IN SUCH CASES, ANY EXPECTED EXCESS OF TOTAL CONTRACT COSTS OVER TOTAL CONTRACT REVENUE FOR THE CONTRACT IS RECOGNIZ ED AS AN EXPENSE IMMEDIATELY IN ACCORDANCE WITH PARAGRAPH 35. 36. FROM THE ABOVE ALSO IT IS EVIDENT THAT ENTIRE B ILLED AMOUNT WAS TO BE ACCOUNTED AS REVENUE AND IF ANY UNCERTAINTY IS T HERE IN COLLECTION OF A PART THEREOF ON ACCOUNT OF CERTAIN CONTINGENCIES, T HE ESTIMATE THEREOF CAN BE CLAIMED AS AN EXPENDITURE. NO UNCERTAINTY HAS BE EN POINTED OUT IN THE PRESENT CASE AND IN FACT, THE ASSESSEE HAS BEEN REL IEVED OF THE BANK GUARANTEE IN THE YEAR 1999-00 WITHOUT ANY LIABILITY ON ACCOUNT OF DEFECT CLAUSE OF THE PERFORMANCE OR IT MIGHT BE THAT SUCH A LIABILITY WAS INCURRED AND MET BY THE ASSESSEE IN SUBSEQUENT YEARS AND CLA IMED AND ALLOWED AS AN EXPENDITURE IN THOSE YEARS. IF HOWEVER, THE ASSE SSEE ESTABLISHES THAT IT HAD ACTUALLY INCURRED ANY EXPENDITURE IN FUTURE YEA R FOR INEFFICIENT PERFORMANCE AND THAT HAS NOT BEEN ALLOWED AS DEDUCT ION IN THOSE YEARS, AN ESTIMATED LIABILITY CAN BE ALLOWED IN THIS YEAR AND BROUGHT TO TAX IN ASSESSMENT YEAR 2000-01. FOR THIS LIMITED ISSUE, WE SET ASIDE THE ORDER OF THE AO AND DIRECT HIM TO CONSIDER THE CLAIM OF THE ASSESSEE IF MADE. 37. THE CASE MAY BE EXAMINED FROM A DIFFERENT ANGLE AS WELL. ON THE ONE HAND, THE ASSESSEE IS DEBITING THE ENTIRE EXPEN DITURE IN ITS PROFIT AND LOSS ACCOUNT BUT ON THE OTHER HAND, IT IS RECOGNIZI NG THE REVENUE ONLY OF THE 90 PERCENT OF THE BILLED AMOUNT OF THE WORK DON E. IF THE ASSESSEES ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 6 CLAIM IS THAT THE BALANCE 10 PER CENT OF THE AMOUNT HAS NOT ACCRUED TO IT THE EXPENDITURE TO THAT EXTENT WOULD ALSO NOT BE RE LATABLE TO THE WORK COMPLETED OR THAT 10 PER CENT OF THE BILLED AMOUNT NOT SHOWN AS INCOME AND CONSEQUENTLY, THE EXPENDITURE COST IS TO BE REL ATABLE TO FUTURE COMPLETION OF CONTRACT AND, THEREFORE, TO BE TAKEN AS WORK IN PROGRESS. IN THE SAID 10 PER CENT ABOVE MAY NOT BE INCOME OF THE ASSESSEE IN THE YEAR UNDER CONSIDERATION AND ONLY THAT PART OF THE AMOUN T COULD BE EXCLUDED FROM ITS INCOME. THEREFORE, EVEN IF IT IS HELD THAT THE RETENTION MONEY HAD NOT ACCRUED. THEREFORE, EVEN IF IT IS HELD THAT THE RETENTION MONEY HAD NOT ACCRUED, NORMALLY THE PROFIT FROM CONSTRUCTION BUSI NESS IS 8 PER CENT TO 10 PER CENT AND AT THAT RATE ONLY 1 PER CENT OF BIL LED MONEY AT THE HIGHEST COULD BE POSTPONED TO ASSESSMENT YEAR 2000-01 AND N OT THE ENTIRE RETENTION MONEY. HOWEVER, SINCE WE HAVE HELD THAT T HE ENTIRE BILLED AMOUNT HAS ACCRUED TO THE ASSESSEE, WE NEED NOT GIV E ANY DIRECTION IN THIS REGARD. 38. THE FACTS AND CIRCUMSTANCES APPEARING IN ASSESS MENT YEAR 1993-94 ARE STATED TO BE SIMILAR WITH REGARD TO ADDITION OF RS.36,68,397/- AND FOR THE REASONS AFORESAID, WE REVERSE THE ORDER OF THE CIT(A) ON THIS ISSUE IN BOTH THE YEARS AND RESTORE THOSE OF THE AO SUBJECT TO OUR DIRECTIONS IN PARAGRAPH 36 ABOVE. WE ALSO LEAVE IT OPEN TO THE AS SESSEE TO SEEK APPROPRIATE RELIEF FROM THE CONCERNED AUTHORITY FOR THE ASSESSMENT OF THOSE INCOME OFFERED IN SUBSEQUENT YEARS IF SO ADVI SED AND IN ACCORDANCE WITH LAW. SINCE THE ISSUE HAS BEEN CONSISTENTLY DECIDED AGAIN ST THE ASSESSEE, RESPECTFULLY FOLLOWING THE ORDER OF THE TRIBUNAL, W E UPHOLD THE ORDER OF LD. CIT(A) AND DISMISS GROUND NOS.1 & 2 OF THE ASSE SSEE ON THE ISSUE OF RETENTION MONEY. 5. GROUND NO.3 WHICH IS RELATING TO VOLUNTARY RETIR EMENT HAS ALSO BEEN DECIDED AGAINST THE ASSESSEE BY THE TRIBUNAL I N ASST. YEAR 2002-03 AS UNDER :- ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 7 5. COMING TO GROUNDS NO.4 & 5 OF THE APPEAL, THE A O RESTRICTED THE DEDUCTION ON ACCOUNT OF PAYMENT UNDER VRS TO 1/5 TH OF TOTAL AMOUNT OF RS.7,17,024/- IN TERMS OF PROVISION OF SECTION 35DD A OF THE ACT. ON APPEAL, THE TAXPAYER CONTENDED BEFORE THE LD. CIT(A ) THAT NO SCHEME FOR VRS WAS FORMULATED IN TERMS OF SECTION 35DDA OF THE ACT AND THE NOMENCLATURE OF EXPENSES CANNOT BE A BASIS FOR THE DISALLOWANCE. IN THE LIGHT OF THESE SUBMISSIONS, THE LD. CIT(A) WHILE RE JECTING THE CONTENTIONS OF THE TAXPAYER, HELD :- 5.2 I HAVE CONSIDERED THE SUBMISSION OF THE APPEL LANT AND THE FACTS OF THE CASE. IT IS SEEN THAT CLAIM OF RS.7,17 ,024/- HAS BEEN MADE ON ACCOUNT OF PAYMENT TO STAFF MEMBERS AND EMP LOYEES AFTER THEY VOLUNTARILY RESIGNED FROM THE COMPANY. THEREFO RE, IT IS CLEAR THAT THIS PAYMENT HAS BEEN MADE TOWARDS SOME RETIRE MENT SCHEME WHICH IS NOT THOUGH FORMULATED AS VOLUNTARY RETIREM ENT SCHEME. PROVISIONS OF SECTION 35DDA, WHICH DEAL WITH THE DE DUCTION ARE AS UNDER : WHERE AN ASSESSEE INCURS AN EXPENDITURE IN ANY PR EVIOUS YEAR BY WAY OF PAYMENT OF ANY SUM TO AN EMPLOYEE AT THE TIME OF HI S VOLUNTARY RETIREMENT, IN ACCORDANCE WITH ANY SCHEME OR SCHEMES OF VOLUNTARY RETIREMENT, ONE FIFTH OF THE AMOUNT SO PAID SHALL BE DEDUCTED IN COMPUTING T HE PROFITS AND GAINS OF THE BUSINESS FOR THAT PREVIOUS YEAR, AND THE BALANCE SH ALL BE DEDUCTED IN EQUAL INSTALMENTS FOR EACH OF THE FOUR IMMEDIATELY SUCCEE DING PREVIOUS YEARS. FROM THE SECTION, IT IS CLEAR THAT IF AN EXPENDIT URE IS INCURRED IN ACCORDANCE WITH ANY SCHEME OR SCHEMES OF VOLUNTA RY RETIREMENT, THEN ONLY 1/5 TH OF SUCH EXPENDITURE IS ALLOWABLE AS DEDUCTIBLE EXPENDITURE FOR THE YEAR UNDER CONSIDERA TION. IN THE CASE OF APPELLANT, ALTHOUGH NO FORMAL VRS HAS BEEN FORMULATED BUT STILL THERE IS A SCHEME UNDER WHICH VOLUNTARILY RET IRING EMPLOYEES HAVE BEEN GIVEN SOME AMOUNTS AS VOLUNTARY RETIREMEN T COMPENSATION. THEREFORE, IN MY VIEW CLAIM OF THE AP PELLANT IS COVERED UNDER THE PROVISIONS OF SECTION 35DDA(1) AN D THE CLAIM WILL HAVE TO BE RESTRICTED TO 1/5 TH OF THE TOTAL AMOUNT I.E. 1/5 TH OF RS.7,17,024/- I.E. RS.1,43,405/-. THE AO HAS RIGHTL Y APPLIED THE PROVISIONS OF SECTION 35DDA(1) AND RESTRICTED THE C LAIM ACCORDINGLY. ACTION OF THE AO, IS, THEREFORE, UPHEL D AND THE DISALLOWANCE IS CONFIRMED. 5.1 THE LD. AR ON BEHALF OF THE TAXPAYER DID NOT DI SPUTE THE FINDING OF THE LD. CIT(A) THAT ALTHOUGH NO FORMAL VRS HAD BEEN FORMULATED, STILL THERE IS A SCHEME UNDER WHICH VOLUNTARY RETIRING EM PLOYEES HAVE BEEN GIVEN SOME AMOUNTS AS VRS COMPENSATION. APPARENTLY EXPENDITURE ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 8 INCURRED ON VRS FALLS WITHIN THE PROVISIONS OF SEC. 35DDA OF THE ACT, INSERTED BY THE FINANCE ACT 2001, WITH EFFECT FROM 1.4.2001. IN THE LIGHT OF AFORESAID UNDISPUTED FINDINGS OF THE LD. CIT(A) WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. ACCORDINGLY, GR OUND NOS.4 & 5 OF THE APPEAL ARE DISMISSED. RESPECTFULLY FOLLOWING THE ABOVE DECISION, WE ALSO DECIDE THE ISSUE AGAINST THE ASSESSEE. AS A RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS D ISMISSED. ORDER WAS PRONOUNCED IN OPEN COURT ON 3/6/11. SD/- SD/- (M. K. SHRAWAT) (D.C. AGRAWAL) JUDICIAL MEMBER ACCOUNTANT MEMB ER AHMEDABAD, DATED : 3/6/11. MAHATA/- COPY OF THE ORDER FORWARDED TO :- 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT(APPEALS)- 4. THE CIT CONCERNS. 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, DEPUTY / ASSTT.REGISTRAR ITAT, AHMEDABAD ITA NO.3366/AHD/2009 ASST. YEAR 2006-07 9 1.DATE OF DICTATION 1/6/2011 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 2/6/2011 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT.. 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..