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2011 (1) TMI 936 - HC - Income TaxDisallowance - job work expenses - Held that:- The Tribunal, in the impugned order, concurred with the findings recorded by the Commissioner [Appeals] and was of the opinion that insofar as the disallowance of labour expenses is concerned, if the Assessing Officer had any doubt with respect to the genuineness of the particulars of vouchers, he should have made disallowance on that basis only. It was, however, found that no serious defect had been pointed out by the Assessing Officer so as to warrant disallowance of the job work charges - Thus, both, Commissioner [Appeals] as well as the Tribunal, have recorded concurrent findings of fact to the effect that there was no adverse material to conclude that the job charges paid were not genuine. Deduction under section 80HHC(3)(a) - The assessee is engaged in the business of manufacturing and trading goods. The assessee has purchased both finished goods as well as raw material for the purpose of manufacturing goods - However, there is no separate record of goods traded and manufactured by the assessee - Held that:- However, since the assessee has in fact purchased raw material and manufactured goods which it has exported, the assessee is entitled to the benefit of deduction under section 80HHC(3)(a) by treating the said exports as export of goods manufactured by the assessee - In the circumstances, in the absence of any record as regards the goods traded and the goods manufactured by the assessee, the Tribunal has adopted a practical approach and directed to compute the export of traded goods and manufactured goods in the ratio of purchases of finished goods to the purchase of raw material as mentioned in Schedule annexed to the audit report - The approach adopted by the Tribunal is a reasonable, balanced and practical approach and cannot be faulted with.
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