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2022 (10) TMI 650
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....y the A.O. On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the A.O. to the above extent. It is, therefore, prayed that the order of the CIT(A) be set and that of the A.O. be restored to the above extent." 3. The assessee has taken the following grounds of appeal "1. The learned Commissioner of Income Tax (Appeals) - 11, Ahmedabad erred in upholding the validity of order passed u/s 153A r.w.s. 143(3) of the Act. 2. The learned Commissioner of Income Tax (Appeals) - 11, Ahmedabad erred in confirming the action of the assessing officer in disallowing the claim of deduction of Rs. 3,70,61,909/- u/s 80IA(4) in respect of following infrastructure projects undertaken by the appellant: Sr. No. of Project referred by CIT (Appeals) Name of the Project Amt. of deduction claimed u/s 80IA (in Rs.) 1 MORB1 MAL1YA RURAL P-2 ROAD 406,454 2 KKS RJT1 - A ROAD 563,830 3 MORBI MALIYA KP / RAJ/P-2 ROAD 800,528 4 MORBI - TANKARA KP /RAJ / P-3 ROAD 202,943 5 NABARD/RAJ/P-4 WMT ROAD 545,654 12 GKA KM42 TO 248 NH-8 NHAI R....
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....e in it was held that Where assessee took contract work of cement lining for water supply project of Gujarat Water Supply and Sewerage Board (Gujarat Government undertaking), it being a contractor and not developer, was not entitled to deduction under section 80IA, In this case the Hon. IT AT had discussed the distinction between a "Contractor ' and ' developer' which is extremely relevant in deciding the issue in the present case. The Hon. Tribunal observed that 'Contractor ' and ' developer' are two different terms. As per the Oxford Advanced Learner's Dictionary, 'developer' is a person or company that designs and creates new projects, whereas 'contractor' is a person or company that has a contract to do work or provides services or goods to another. The benefit of section 80-IA is available only to the developer. It is the condition precedent for the availability of the benefit of this section that the undertaking or enterprise must derive its income from carrying on the business of developing any infrastructure facility. The prescription of section 80-IA shall not apply to a person who executes work contracts entered into with an....
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....n cannot be allowed in relation to a business which is in the nature of works contract. 10. In view of the above discussion, there is no reason to ignore the unambiguous language of the Explanation, which is simple and plain, denying the benefit of deduction to the business which is in the nature of a works contract. There is no need to arbitrarily presume any doubt in the language of section, which does not, in fact, exist, and then proceed to finding out ways and means of granting the benefit to the assessee, which the legislature did not intend. Here in would only be pertinent to refer to the decision of Hon. Supreme Court in the case of Padmasundara Rao( Deed.) vs. State of Tamil Nadu (2002) 255 ITR 147 where in it was pointed out by the Apex Court that the plain language to the statute is best understood as the declaration of the intention of the Legislature, The court can not seek to supply omissions as such an attempt would tantamount to power to legislate, which it does not have. The plain inference can not be dismissed on the ground that it would be unreasonable or that the language is contrary to the obvious intention of the legislature. Where as in the present c....
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....Nos. 219,220,221,222/Rjt/2015, 199,200,201,202/Rjt/015 dated 03-06-2020 4. M/s KCL - BEL Tarmat (JV) (Rajkot Tribunal) in ITA No. 192, 193/Rjt/2011, 214/Rjt/2011 and 485/Rjt/2014 dated 03-12-2018 5. Welspun Projects Ltd. (Ahmedabad Tribunal) dated 08-10-2018 (2018) 54 CCH 0070 6. M/s BBEL STPL (JV) (Rajkot Tribunal) in ITA No. 507/Rjt/2012 dated 28.-10-2016 - A.Y. 2009-10 7. TARMAT - BEL (JV) (Rajkot Tribunal) in ITA No. 1111/RJT/2010 dated 23-09-2010- A.Y. 2007-08 8. TRG Industries Pvt. Ltd. (2017) 155 DTR 0109 (J & K HC) 9. M/s. Simplex Infrastructure (2017) 49 CCH 0088 (Kolkata Tribunal) 10. VRM India Ltd. (Delhi HC) ITA nos. 2069 of 2010, 318 & 320 of 2014 dated 18-03-2015 11. Sugam Construction Pvt. Ltd. Vs. I.T.O. (2012) 34 CCH 0383 (Ahmedabad Tribunal) 12. GVPR Engineers Ltd. & Others, Hyderabad (2012) 32 CCH 0296 (Hyderabad Tribunal) 13. Laxmi Civil Engg. P. Ltd. (Pune Tribunal) in ITA Nos. 766/PN/09, 254/PN/08, 431/PN/07 & 435/PN/07 14. Gayatri Projects Ltd. (Hyderabad Tribunal) in ITA Nos. 211/Hyd/2008, 711 & 712/Hyd/2010 15. Koya & Co. Construction (P.) Ltd. (Hyderabad Tribunal) (2012) 32 CCH 0043 ....
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.... (a) it is owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act; (b) it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility; (c) it has started or starts operating and maintaining the infrastructure facility on or after the 1st day of April, 1995: The above provision has been further clarified by way of explanation under sub-section (13) of section 80-IA(4) of the Act, with retrospective effect from 01-04-2000, which reads as under: Explanation.-For the removal of doubts, it is hereby declared that nothing contained in this section shall apply in relation to a business referred to in sub-section (4) which is in the nature of a works contract awarded by any person (including the Central or State Government) and executed by the undertaking or enterprise referred to in sub-section (1) The Memorandum to t....
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.... eligible for the tax benefit under section 80-IA. This amendment will take retrospective effect from 1st April, 2000 and will, accordingly, apply in relation to the assessment year 2000-2001 and subsequent years. 5.2 A reading of the various Statutory provisions read with the Memorandum brings out the following salient features of claim of deduction under section 80-IA(4) of the Act: 5.3 Firstly, purpose of introduction of beneficial provisions under section 80-IA(4) of the Act is for encouraging private sector participation. Secondly, only investment in development of the infrastructure sector is eligible for deduction under section 80-IA(4) of the Act and benefit is not available for the persons who merely "executes" the "civil construction work" or "any other works contract". Thirdly, where a person makes the investment and himself executes the development work i.e., carries out the civil construction work, he will be eligible for tax benefit under section 80- IA(4) of the Act. Fourth, the Income Tax Act does not define what would constitute as "works contract/works contractor" (as opposed to section 194C of the Act, where the word "contractor" finds a specific definition....
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....ly to persons who merely "execute" works contract. Therefore, in cases where a person makes the investment and himself executes the development work i.e., carries out the civil construction work, benefit under section 80-IA(4) of the Act would be available. Therefore, a co-joint reading of all the provisions reproduced above, read with the memorandum, points to the fact that the benefit under section 80-IA(4) of the Act continues to be available to works "contractor/civil contractor" engaged in "development" of the project by making the investment and himself executing the development work and is only sought to be denied to those class of persons engaged merely in "execution" of works contract/ civil construction work. 5.5 Now, in the absence of any definition of "works contractor" with reference to section 80-IA(4) of the Act, the issue for consideration is what class of cases would fall under the definition of "mere execution" of works contract and hence not eligible for benefits under section 80-IA(4) of the Act which cases would fall under the category of "development activities" done by a civil/ works contractor and hence eligible for benefits under section 80- IA(4) of the....
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....the period of construction any damage is incurred and whether the contractor shall be responsible for the same i.e. whether the assessee has to furnish a security deposit to the Employer and indemnify the employer of any losses/damage caused to any property/life in course of execution of works Seventh, whether the contractor was responsible for the correction of defects arising in the works at its own cost and responsibility. 5.6.1 To sum up, (i) first to see any new infrastructural facility has been put in place (and not mere repairs/ restoration/ upgradation/ strengthening etc. is done of the existing facility) (ii) In addition to works contract, the assessee undertakes addition responsibilities and risks attached to the project being undertaken, both financial risk as well as undertaking responsibility towards various other obligations attached towards successful completion and handling over the project including post completion performance guarantee, then he would, in our considered view, be eligible to deduction u/s 80-IA(4) of the Act. 5.7 Now having discussed the legal background, we shall come to the facts of the case in hand. Department's appeal 6. Now, wit....
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....ing up of the site as may-be required-m-completion of works, safety of the public and protection of the works and adjoining land. The contractor should ensure that all actions are taken to built in quality insurance in the planning and execution of the work. The quality insurance should cover all stages of rework, such as setting out, section of materials, section of construction method, selection of equipment and plant, deployment of personnel and supervisory staff, quality control, testing etc. The work of building in quality insurance shall be deemed to be covered in this scope of the work. The cost of contract was of 10,20,09,748/- and it was to be completed within a period of 18 months. The Contractor had to give 12 months free maintenance guarantee period from the certified date of taking over. During this period the contractor was to repair the damaged portion of any portion of the project. The terms and conditions of the contract were similar to those as mentioned in the contracts entered by the government or by its agencies for developing any infrastructure facility for public utility. After having regard to the terms and conditions of the agreem....
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....r alone or jointly with another, under any provisions of the Government Acts or any other statutory enactments in force, in modification or substitutions thereof. Government shall at all times be entitled to deduct the said sum of taxes due from contractors from the moneys, securities or deposits which may become payable or returnable to the Contractor under this contract. MAINTENANCE: Not with standing what has been mentioned in clause 17 and 20 of the printed B-2 form, the contractor for a period from the date of issue of the final certificate under clause 7 of the printed B-2 form till the expiry of twelve calendar months commencing immediately after the plant or works have been considered to be put to commercial use, shall be liable for the proper maintenance and for replacement of any part of the plant, materials, workmanship or any other reason for which in the judgment of the engineer, the contractor is responsible and for making good any damage arising therefrom. The Department's decision regarding date of beginning of .commercialize, of the completed work under the contract/depending upon the circumstances and merits of the situation shall be final. ....
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....bank of river Tapi, Rander-Kathor- Amboli falling under the the jurisdiction of Surat Canal Division, Surat in Surat city limit. The tender covered protection of earthen embankment by gabions filled with rubble above layer of geofabric filter and sand-gravel bags as directed by Engineer-in-Charge. The main items executed in the tender were earth work in embankment, Geofabric filter, Compaction of earthwork and Rock fill wire gabion. The work was executed in the length of 1050 mtr. with qty. of earthwork of 77389m3, geo- fabric filter of 32871m2, gabions of (1.5x1.0x0.6 mt.) in 32871 nos., Rope Gabion (1.5x1.0x0.6 mtr) and gabion (4.0x1.0x1.0 mtr.) in 263 nos. This work was to be completed according to a time bound programe. The cost of the contract was of Rs.10,88,54,285/- The project was to be completed within a period of 15 months and maintenance period was for a period of 12 months after completion of the project. The terms and conditions of the contract were similar to those as mentioned in the contracts entered by the government or by its agencies for developing any infrastructure facility for public utility. After having regard to the terms and conditions of the agre....
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.... in holding that the assessee is eligible for claim of deduction under section 80-IA (4) of the Act in respect of contract number 7 as mentioned above. Accordingly, we are of the view that the assessee is not eligible for claim of deduction under section 80-IA (4) of the Act in respect of contract number 7. Contract number 8 Tapi River, Kathor PKG-3 Irrigation: 7.7 From a perusal of the contention of the order passed by Ld. CIT(Appeals), the scope and contents of contract number 8 and contract number 7 mentioned above are similar. Accordingly, observations in respect of contract number 7 would apply to contract number 8 as well. Accordingly, Accordingly, we are of the view that Ld. CIT(Appeals) has erred in facts and in law in holding that the assessee is eligible for claim of deduction under section 80-IA (4) of the Act in respect of contract number 7 as mentioned above. 7.8 Accordingly, we are of the view that the assessee is not eligible for claim of deduction under section 80-IA (4) of the Act in respect of contract number 8. Contract number 9: Bharuch 4, Lane Road: 7.9 In this case, Ld. CIT(Appeals) while allowing the relief with the following observations: ....
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....re of the view that the assessee is eligible for claim of deduction under section 80-IA (4) of the Act in respect of contract number 9. CONTRACT NUMBER 10: GIDC CHEMICAL ZONE DAHEJ ROAD 7.13 In this case, Ld. CIT(Appeals) while allowing the relief with the following observations: "11.9 The contract at Sr. No. 10 was between the Gujarat State Road Development Corporation Ltd. and the appellant for construction of roads in GIDC Chemical Zone Dahej. The contract was for construction of roads including SWD, Street light, providing water supply distribution network system and providing treated effluent collection network system for chemical zone at Dahej. It was construction of four lane asphalt road in chemical sector at Dahej in a length of about 3250 mtrs, with provision of a center verge 1 mtr. wide for dividing the traffic moving in opposite directions, pucca sides shoulders of 1.5 mtrs. width were to be constructed on either side of roads for allowing facility of pedestrian traffic/two wheelers to move on the pucca side shoulder duly segregated from the heavy traffic in the main lane, pucca portion of side shoulder could also be used for road widening in future, con....
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....ntered by the government or by its agencies for developing any infrastructure facility for public utility. After having regard to the terms and conditions of the agreement for development of the infrastructure facility, the rulings of the courts and position of law on the issue, in my opinion, the assessee acted as a developer because he developed infrastructure facility and handed over the same to the authority concerned with guarantee period for maintenance." 7.14 In addition to the observations made by Ld. CIT(Appeals), we have also perused terms of the contract/agreement and it would be useful to produce some of the terms, which would throw useful light on the additional responsibility of being undertaken by the assessee. "Security Deposit Initial Security Deposit shall be in the form of DD/FDR of Nationalized Banks/ Scheduled banks - UTI, ICICI, HDFC, IDBI banks & NSC or SSNNL bonds etc. equivalent to 2.5% of the estimated cost put to tender i.e. Rs.61,12,109.00 and 2.5% of the estimated cost i.e. Rs.61,12,109.00 shall be deducted from the running account bills as Security Deposit & 5% i.e. Rs.1, 22,24,218.00 in form of performance bond of any Nationalized....
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....ITY DEPOSIT I Initial Security Deposit snail be in the form of DD/FDR of Nationalized Banks / Scheduled banks - UTI, ICICI, HDFC, IDBI banks & NSC or SSNNL bonds etc. shall be Rs. 61 ,12,109.00 equivalent to 2.5% of the estimated cost put to tender & Rs. 61, 12, 103. 00 i.e. 2.5% of the estimated cost shall be deducted from the running account bills as security deposit & 5% i.e. Rs.1,22,24,218.00 in form of performance bond of any Scheduled banks / UTI, ICICI, HDFC, IDBI banks & NSC or SSNNL bonds etc. so as to make total Security Deposit not more than Rs. 2, 44, 48,436.00 equivalent to 10% of the estimated cost. 4.2 Earnest Money paid by furnishing the initial Security Deposit or adjusted against the Initial Security Deposit at the discretion of the Owner. 4.3 If the successful tenderer fails to commence the work within the prescribed time specified in the Contract the security deposit shall be forfeited to action under clause no. 7/8. 4.4 The Initial Security Deposit under this clause shall become due for discharge only after the completion of Defect Liability Period and issue of a Final Acceptance Certificate by the Engineer - in - Charge, set....
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....event damages due to rain, wind, direct exposure to sun etc. as also from theft, pilferage etc., for proper and speedy execution of his works. The Contractor shall maintain sufficient stocks of ail materials required by him. 42.3 No materials shall be dispatched from the Contractor's stores before obtaining the approval in writing of the Engineer- in-Charge. 6.0 TWELVE MONTHS PERIOD OF LIABILITY FROM THE DATE OF COMPLETION 56.1 The Contractor shall guarantee the installation/work for a period of 12 months from the date of completion of work as certified by the Engineer-in-Charge which is indicated in the Completion Certificate. Any damage or defect that may arise or lie undiscovered at the time of issue of Completion Certificate, connected in any way with the equipment or materials supplied by him or in the workmanship, shall be rectified or replaced by the Contractor at his own expense as deemed necessary by the Engineer-in-Charge or in default, the Engineer-in-Charge may carry out such works by other agencies and deduct actual cost incurred towards labour, supervision and materials, consumables or otherwise plus 15% towards over heads (of which the ....
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....t State Road Development Corporation Ltd. and the appellant for construction of additional two lanes between Bharuch and Dahej Road in SEZ-I, at GIDC, Dahej. The works included upgradation about 7.50 kms of existing roads in GIDC Dahej estate including the following works. Developing existing 2 Lane road C-C1 to C7 by widening form 6.70 mt. width to 7.00 met width, strengthening the same leading to a 7.00 met. Wide concrete pavement carriage way. Developing a new 2 lane road with concrete carriage way C-C1 to C7 besides existing roads to have a 4 lane concrete carriage way. Providing a 5 met. Wide central verge, within 4 lane carriage way, bound by R.C.C. kerb wall with due provision in between to facilitate vehicles to change lanes at locations defined in working drawings. Providing 2 met wide cycle track / foot path on either side of 4 lane concrete carriage way with necessary R.C.C. guard stones and on either side of both the cycle track / foot path to separate heavy traffic and pedestrians and the two wheeled light traffic. Developing a new 4 lane concrete carriage way in portion C7 to C8 including central verge and cycle track / foot path as specified under para 1b (i) 1b(ii) ....
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....would throw useful light on the additional responsibility of being undertaken by the assessee. "PERFORMANCE GUARANTEE The Contactor shall give performance guarantee in form of unequivocal bank guarantee amounting to 5% of Estimated cost put to tender. The performance bond in the format given shall be submitted along with the security and shall be refunded only after completion of work. MAINTENANCE GUARANTEE The Contactor shall give maintenance guarantee bond in form of unequivocal bank guarantee amounting to 5% of Estimated cost put to tender The maintenance guarantee bond in the format given shall be submitted at the time of issue of completion certificate and having validity of 5 years from the date of completion certificate. 10.0 DEDUCTIONS FROM THE CONTRACT PRICE AIL costs, damages or expenses which 60-Developer may have paid or incurred which "under the provisions of the Contract the Contractor ,s liable/will be liable, will be claimed by the Co- Developer. All such claims shall be billed by the Co-Developer to the Contractor regularly as and when they fall due Such claims shall be paid by the Contractor within 15 (fifteen)....
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.... Act, 1961. Vide the above Circular, CBDT clarified that widening of an existing Road by constructing additional lanes as a part of a highway project by an undertaking would be regarded as a new infrastructure facility for the purpose of section 80-IA(4)(i). However, simply relaying of an existing Road would not be classifiable as a new infrastructure facility for this purpose. 7.20 Accordingly, we are of the view, that Ld. CIT(Appeals) has not erred in facts and in law in holding that the assessee is eligible for claim of deduction under section 80-IA (4) of the Act in respect of contract number 11 mentioned above. Contract number 13: Bhopal Vidisa Road: 7.21 In this case, Ld. CIT(Appeals) while allowing the relief made the following observations: "11.12 The Contract at Sr. No. 13 was between the appellant and the Public Works Department to construct road of 36.10 k. mtrs. as between Bhopal and Vidisa as a part of the Madhya Pradesh State Road Sector Development Programe, Phase 1, Six" State Highway Corridors. The appellant, after completion of the work, handed over the developed infrastructure facility to the Madhya Pradesh Public Works Department, Ther....
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.... as a developer because he developed infrastructure facility from an undeveloped area and handed over the same to the Madhya Pradesh Public Works Department. Therefore, he was eligible for claim of deduction u/s.80IA(4) (i) of the Act and the same is allowed. 7.22 In addition to the observations made by Ld. CIT(Appeals), we have also perused terms of the contract/agreement and it would be useful to produce some of the terms, which would throw useful light on the additional responsibility of being undertaken by the assessee. "Sub-Clause 10.1: Performance Security Substitute Sub-Clause 10.1 by the following: "The Contractor shall provide security for his performance of the Contract to the Employer within 28 days after the receipt of the Letter of Acceptance. The Performance Security shall be in the form of an unconditional bank guarantee from any nationalised bank or scheduled bank in India or foreign bank. The amount of the bank guarantee shall be 10% (ten percent) of the Contract Price. The performance security shall be denominated in the types and proportions of currencies in which the Contract Price is payable. The same shall ....
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....other interest-free advance against key plant and machinery required for the works and brought to site, if so requested by the Contractor. The maximum amount of such advance shall be 5 (five) percent of the Contract Price stated in the Letter of Acceptance, in types and proportionate amounts of currencies, as agreed to in the Contract. In the case of new plant and equipment, the advance shall be limited to ninety percent of the price of such new plant and equipment, brought at site by the contractor for which the Contractor shall produce satisfactory evidence. In the case of used plant and . equipment, the amount of such advance shall be limited to ninety percent of the depreciated value of plant and equipment as may be determined by the .Engineer. This advance shall be further subject to the condition that: (i) such , plant and equipment are considered by the Engineer to be necessary for the-Works, (ii) such plant and equipment are in working order, and (iii) the Contractor provides an unconditional bank guarantee by a bank acceptable to the Employer in an amount equal to the advance. Such bank guarantee to remain effective until the advance has been completely re-paid by the Cont....
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....t and Loss Account of the assessee for the relevant years ending on 31.3.2009 and 31.3.2010 respectively, copies of which are furnished by the assessee at pages 20 and 65 of the paper-book. Similarly, assessee has invested its own fund of Rs.5,55,00,000.00 for assessment year 2009-10 and of Rs. 7,86,75,710.00 for the assessment year 2010-11, as seen from the Balance Sheet of the assessee as on 31.3.2009 and 31.3.2010 respectively, copies of which are furnished by the assessee at pages 21 and 66 of the paper-book. In this view of the matter, the reason given by the CIT(A) on this aspect for denying deduction to the assessee under S.80-IA is also not valid". Thus, in light of the aforesaid decision of the Tribunal Hyderabad Bench, we are of the view that merely because the assessee was receiving payments from the Government in progress of work it cannot be said that the projects were financed by Government. The attendant conditions at the time of grant of mobilisation advance play an important role in deciding whether the project is a "works contract" or "development project". In the instant facts, we observe that mobilisation advance was given to the assessee after imposing strict c....
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.... Tambaram Tindivanam Expressways Ltd v DCIT in I.T.A Nos.545 & 546/Bang/2018, held that a clear distinction can be made between widening an existing road by constructing additional lanes as part of the highway project vis-à-vis improving, maintaining and refurbishing an existing road. For a specific patch of road, as the taxpayer was only operating and maintaining an already existing four lane road by strengthening it, no new infrastructure facility came into existence. Laying a service road and laying a main line were two different activities and laying a service road could not be termed as a new infrastructure facility, to claim deduction under section 80-IA of the Act. 8.3 Accordingly, in our view, we find no infirmity in the order of Ld. CIT(Appeals) with respect to Contract Number 1. Accordingly, in our view, the assessee is not eligible for claiming deduction under section 80-IA of the Act in respect to Contract number 1. Contract No. 2: KKS RJTI-A Road 8.4 In this case, Ld. CIT(Appeals) while disallowing the claim of deduction u/s 80-IA(4) of the Act with the following observations: "11.1 The contract at Sr.No.2 was entered between Gujarat State Road....
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....: Morbi Malaiya KP/RAJ/P-2 ROAD: 8.8 In this case, Ld. CIT(Appeals) while disallowing the claim of deduction u/s 80-IA(4) of the Act with the following observations: "11.2 The contract at S. No.3 was entered between Gujarat State Roads and Building Department and the appellant for Improvement of Rural Roads under the scheme of Kishan Path Yojana (Package No. Kishan Path / P-2/Raj. Taluka, Morbi - Maliya district Rajkot. The terms and conditions of the contract work were examined and it was observed the assessee did not develop any infrastructure facility but only rendered services of civil work in the form of repairing and restoring of the the existing road. As there was no development of any infrastructure facility, in my considered opinion, the assessee,was not eligible for claim of deduction u/s.80IA(4) of the I.T. Act Therefore, the action of the A.O. was confirmed." 8.9 From perusal of the observations made by Ld. CIT(Appeals), it is evident that the assessee has not developed any infrastructure facility but only rendered services of civil work in the form of repairing and restoration of the existing road. In this case, it may be useful to refer to CIRCULAR NO. ....
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....dingly, in our view, we find no infirmity in the order of Ld. CIT(Appeals) with respect to Contract Number 4. 8.13 Accordingly, in our view, the assessee is not eligible for claiming deduction under section 80-IA(4) of the Act respect to Contract number 4. Contract No. 5:Nabard/RAJ/P-4WMT ROAD: 8.14 In this case, Ld. CIT(Appeals) while disallowing the claim of deduction u/s 80-IA(4) of the Act with the following observations: "11.4 The contract at Sr.No.5 was entered between Gujarat State Roads and Building Department and the appellant for repairing of the existing road of Rajkot district under NABARD RIDF XI- (Package No. Raj-P-04)-Taluka, Wankaner - Tankara - Morbi in district of Rajkot. Terms and conditions of the agreement were examined. As a matter of fact, the contract was made for improving/resurfacing rural roads in district of Rajkot. The work included providing and laying thick mix seal surface using stone chips, rolling and consolidation of WBM including sealing depression, preparing the surface by brushes for removing caked mud, loose dirt etc., supplying and spreading of murrum for road-side shoulders including rolling and watering, providing....
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....was made for improving/resurfacing rural road in affected district of, Rajkot. The work included providing and laying thick mix seal surface using stone chips, rolling and consolidation of WBM including sealing depression which occurred during the process with power roller, preparing the surface by brushes for removing caked mud etc. sweeping with brooms and finally fanning the surface with gunny bags to remove all loose dirt etc., water bound macadam surface (new), supplying and spreading of murrum for road-side shoulders including rolling and watering, providing and laying thick bituminous macadam in one layer, fixing ordinary kilometer stones, indicator stones, guard stones and road sign boards of M.S plates and angle irons, including painting, lettering etc. complete with fixing in C.C. block with necessary excavation, pre-casting including necessary re-inforcement, painting, lettering and fixing hector-meters etc.. The terms and conditions of the contracts were examined and it was observed the assessee did not develop any infrastructure facility but only rendered services of civil work in the form of repairing and maintenance of the existing road. As there was no deve....