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TMI Blog2018 (7) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... see. This fact is also not disputed that in the preceding years also the assessee has claimed similar type of wastage of almost around same per centage which has been accepted by the revenue authorities also. - decided against revenue - ITA No. 274/Ind/2017, CO No. 5/Ind/2018, ITA No. 276/Ind/2017 And CO No. 6/Ind/2018 - - - Dated:- 19-7-2018 - Shri Kul Bharat, Hon ble Judicial Member And Shri Manish Borad, Hon ble Accountant Member For The Revenue : Shri K.G. Goyal For The Assessee : Shri S.S. Deshpande ORDER PER SHRI MANISH BORAD, AM The revenue has filed the above-captioned appeals whereas the different assessees have preferred Cross Objection relating to the assessment years 2013-14 and 2014-15 again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails and the manufacturing of gold ornaments through them along with details of quantity and rate of labour charges. However, the Assessing Officer was not satisfied with the submissions and did not accept the wastage loss of gold of around 3.81% on the premise that gold is a precious metal which is extremely ductible and malleable and the alleged claim of loss has no scientific basis as very small gold particle and even the dust produced in the process of manufacturing is used by the goldsmiths after melting it. The Assessing Officer accordingly made an addition of ₹ 1,05,85,930/- arrived at after applying the average sale price of ₹ 3151.02 per gm on the alleged excess shortage of gold of 3359.64 gms. Minor additions were al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d gold ornaments manufactured and received back. All details including confirmation by each goldsmith stands filed on record. It is further submitted that in case higher labour charges are paid, the wastage of gold is less and vice versa if lower labour charges are paid. 8. We further find that the learned Commissioner of Income Tax (Appeals) after appreciating the facts in detail, deleted the addition for the alleged suppression of yield by relying upon the judgment of Hon'ble High Court of Jammu Kashmir in the case of International Forest Company vs. CIT (1975) 101 ITR 721 observing as follows :- Ground No. 2,3,4 5 Through these grounds of appeal the appellant has challenged the addition of ₹ 1,05,85,930/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per gram whereas the yield from Mis. Milap Jewellers is 108 to whom the appellant has paid Rs.lS01- per gram. The hire the labour charges the yield will be more and the lower the labour charges the yield will be low. The appellant has filed all the details of manufacturing of gold jewellery as per sunar bahi. The appellant has maintained quantitative details under computer system. Month wise purchases and sales with quantitative details have been filed before the AO. All the vouchers of manufacturing of jewellery from sunar have been filed and comparative details of other dealers are also filed. The A.O. failed to bring on record any specific defects in the books of account of the appellant. The AO must refer the defects in books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive details of each gram of raw gold issued to goldsmiths for getting gold ornaments manufactured. The confirmation letters and ledger account copies of the goldsmiths have also been filed. The Assessing Officer has been unable to point out any mistake in these records. The books of accounts are audited and quantitative details are certified by the auditors. The Assessing Officer has not rejected the books of accounts before making such ad hoc addition that too without bringing any clinching evidence against the assessee. This fact is also not disputed that in the preceding years also the assessee has claimed similar type of wastage of almost around same per centage which has been accepted by the revenue authorities also. We, therefore, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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