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2016 (8) TMI 161 - HC - Income TaxDisallowance of job work charges - ITAT upholding the decision of CIT (A) whereby the disallowance has been restricted to 2.5% from 25% - Held that:- The Tribunal, while dismissing the Revenue's appeal, noted that before CIT (Appeals), the assessee had pointed out the relevant details with full addresses of the vendors and copies of their bills. These vendors were from Bhivandi, Maharastra. It was not possible to obtain a confirmatory letter from each of them after long passage of time. The Tribunal noted that the Assessing Officer had not recorded any justifiable reason for making such disallowance on estimate basis. The Tribunal was of the opinion that in the line of the business namely of manufacturing of grey cloth, finished cloth could not be sold unless it is weaved and processed and the cost of weaving and processing is direct cost which has to be incurred by the assessee. The assessee had supplied the list of parties to whom weaving charges have paid with complete addresses of such persons. He had also filed copies of bills of job work expenses containing details such as names and addresses of the parties. Thus, the issue was examined by the CIT (Appeals) and the Tribunal on the basis of available materials on record. Such concurrent findings do not call for any interference - Decided against revenue
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