9911796707
TMI Blog2014 (2) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... has produced all the relevant evidences in support of the claim of labour charges & therefore no disallowance on presumptive basis should be made if there are no defects in the evidences produced by assessee - there is no basis in restricting the claim of labour charges - there was no infirmity in the order of CIT(A) - Decided against Revenue. - ITA No. 780/Ahd/2011 - - - Dated:- 30-1-2014 - Shri N. S. Saini And Shri Kul Bharat,JJ. For the Petitioner : Sh. P. L. Kureel, Sr.D.R. For the Respondent : Sh. Sapnesh Sheth, AR ORDER Per Shri N. S. Saini, Accountant Member: This is an appeal filed by the Revenue against the order of the CIT/A dated 03.11.2010. 2. The sole issue involved in this appeal is that the Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... labour charges per carat varied from Rs 300/- to Rs 500/- per carat depending on the size and shape, quality of rough diamonds and skill of the labour. The Assessing Officer was not satisfied with the explanation of the assessee. The Assessing Officer observed that the assessee has failed to submit data with regard to shape, size, quality of rough diamond and also observed that diamond labour is paid different rate for different job and the rate varies as per the size, weight and quality of rough diamond and the assessee knows all these facts but does not produce the details of such computation. Therefore, he considered the labour charges at the rate of Rs 350/- per carat as reasonable and difference of Rs 43/- per carat which worked out t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creased turnover as compared to the preceding year. The gross profit rate comes to 6.51% of turnover of Rs 18.38 crores as against gross profit rate of 6.26% on turnover of Rs 8.25 crore for the immediately preceding year. He also observed that the assessee has produced all the relevant evidences in support of the claim of labour charges and therefore, no disallowance on presumptive basis should be made if there are no defects in the evidences produced by the assessee. The Ld. CIT(A) also observed that there was no basis in restricting the claim of labour charges only to the extent of Rs 350/- per carat. Therefore, the Ld. CIT(A) deleted the addition of Rs 15,22,088/-. 5. The Ld. DR relied on the order of the Assessing Officer. 6. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the difference amount of Rs 43/- per carat which worked out to Rs 15,22,088/-. 8. On appeal, the Ld. CIT(A) deleted the addition. While doing so, the observation of the Ld. CIT(A) was that during the year under consideration, the gross profit rate of 6.51% shown by the assessee was higher than gross profit rate of 6.26% shown in the earlier year and that too on an increased turnover of Rs 18.38 crores as against Rs 8.25 crores in the earlier year. The Ld. CIT(A) has further noted that the assessee had produced all relevant evidences in support of the claim of the labour charges and no defects were pointed out by the Assessing Officer in those evidences and therefore, the disallowance made by the Assessing Officer on presumptive basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quality, etc. of rough. While contending that assessee has not produced details relating to size, weight, quality, etc., the Assessing Officer has not pointed out as to what is the size, weight, quality, etc. of rough diamonds of the 3 entities relied upon by him. It is also seen that despite rise in rate of labour charges there is increase in G.P. rate that too on increased turnover, as compared to the preceding year as G.P. rate comes to 6.51% on turnover of Rs. 18.38 crores, as against G.P. rate 6.26% on turnover of Rs. 8.25 crores for the immediately preceding year. Further, assessee has produced all the relevant evidences fin support of the claim of labour charges therefore no disallowance on presumptive basis should be made if the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
