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TMI Blog2021 (4) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... epted in the subsequent year, then there was no reason to doubt the genuineness of the outstanding balance. These findings given by the CIT(A) are correct as per the records. Merely, non-producing the parties in person despite knowing that these parties are identified parties, cannot determine the non-genuineness of the transaction. Thus, the CIT(A) rightly deleted the addition. Addition relating to job work charge - CIT-A deleted the addition - as per assessee the job work was related to the sister concern and, therefore, the CIT(A) has rightly deleted this addition - HELD THAT:- CIT(A) has given a categorical finding that the Assessing Officer has not brought any comparable cases in respect of increase in job work charges as there is increase in labour and electricity cost which was categorically proved by the assessee before the CIT(A). Ground No. 4 5 are dismissed. Disallowance relating to deduction u/s 80IC - proof of manufacturing activity as undertaken by assessee - HELD THAT:- It is pertinent to note that TMT bars made from MS Ingots suffer from a deficiency in tensile properties, and there arises inconsistency in tensile strength and elongation. But TMT bars pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without taking consideration of facts that bills have been raised @ ₹ 2100/MT only. Therefore, there is no reason to make payment to its sister concern @ 2500/Mt on account of job work charges. 5. The Ld.CIT(A) has erred in not taking consideration of facts that the assessee is not responsible for expenses incurred by its sister concern on job work charges and making payment accordingly as it is against the concept of any business prudence. C.O No. 308/Del/2016 (A.Y 2011-12) 1. On the facts and circumstances of the case, the order passed by the learned CIT(A) is bad both in the eyes of law and facts. 2. (i)On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the action of the AO in restricting the deduction under Section 80-IC to ₹ 6,96,627/- as against ₹ 13,72,033/- claimed and allowable under the provisions of the Act. (ii) On the facts and circumstances of the case, the leaned CIT(A) has erred both on facts and in law in confirming the action of the AO in holding that the assessee is not entitled to 80-IC deduction in respect of sale of TMT bars, angles/channels. (iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 creditors to whom either summons could not be served or no compliance was made by the creditor to the summon. The assessee also filed confirmation of 4 creditors along with their replies and their PAN numbers. These are M/s Raj Nandi Metal Pvt. Ltd., M/s Ajay Enterprises, M/s Saton Reflectors Enterprises and M/s Shiv Enterprises, Ahmedabad. The assessee has filed copy of ledger account of all the parties where in the amount of outstanding has been squared off by making payment through proper banking channel. The Ld. AR also submitted the bank statements highlighting the payments made to the above parties through account payee cheque as well as indicating the outstanding balance of each 21 parties was also provided by the Assessee before the Assessing Officer. The said documentary evidences submitted by the assessee were totally ignored by the Assessing Officer in the assessment order. The Ld. AR submitted that the Assessing Officer has never rejected books of accounts and has not pointed out any discrepancy in the books of account. The Ld. AR relied upon the order of the CIT(A) and submitted that the CIT(A) has given a cogent and reasoned finding while deleting the addition. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are dismissed. 11. As related to Cross-Objection of the assessee the disallowance relating to deduction u/s 80IC claimed by the assessee, the Ld. AR submitted that the assessee firm was engaged in the manufacture of MS Billets i.e. the raw material required to manufacture the final product TMT Bars. This manufactured raw material is further supplied to its sister concern M/s Amba Shakti Ispat Pvt. Ltd. which in turn manufactures the final product TMT bars for the assessee on job work basis. The assessee has duly submitted the ledger account for job work charges, auditor report in Form 10CCB, Certificate of commencement of commercial production from District Industries Centre, Nahan. The Ld. AR submitted that no deduction is disallowed in AY 2012-13 2013-14 and claim of assessee was accepted by the Revenue. The Ld. AR relied upon the decision of Tribunal in case of Sunrise Metal Industries Vs. ITO 2002(11) TM 284 DCIT Vs. Legancy Foods Pvt. Ltd. (ITA No. 3643/Del/2013 order dated 22/08/2014) as well as Shah Originals Vs. ACIT (ITA No. 3206/Mumbai/2006. 12. The Ld. DR relied upon the assessment order and the order of the CIT(A). 13. We have heard both the parties and per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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