2009 (7) TMI 35

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....de by B. RAJENDRAN, J. - The Revenue filed these appeals against the order of the Income Tax Appellate Tribunal, Chennai Bench "D", made in I.T.A. Nos.2557 & 2558/Mds/05 dated 31.10.2007. 2. The Assessing Officer, while completing the proceedings under Section 143(3) r/w. Section 147, brought to tax the retention money and additional security deposit in the account of the assessee. The Asses....

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....ssed by the Commissioner of Income Tax (Appeal). Aggrieved against the said decision, the Revenue has come forward with the present appeals. 3. The only question of law which was sought to be presented before this Court by the Revenue is whether in the facts and circumstances of the case, the Tribunal was right in holding that the retention money and the additional security deposit had not accr....

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....id that 10 per cent of the amount retained had accrued to the assessee and hence, it was not assessable in the assessment year wherein it was sought to be done by the department. Similarly, in the decision reported in East Coast Constructions (283 ITR 297), in identical circumstances, while dismissing the appeal filed by the Revenue, the Court has come to the conclusion that the assessee was entit....

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....ould be only after the total completion of the contract. Therefore, even though the contract was over, the assessee would not be able to lay his hands till the contract is successfully concluded and accepted by the contractee. Therefore, what applies to the retention money in the above said two decisions would equally apply to the additional security deposit amount also. Accordingly, we concur wit....