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2016 (12) TMI 557 - AT - Income TaxAddition as profit from trading in gold - appellant had resorted to under valuation of closing stock - Held that:- As decided in assessee's own case this Tribunal had indeed considered the argument of the assessee on gold content in the stock and held that only real gold content was to be considered. It also held that the valuation at rate of 538.599 per gram, as done by the assessee considering the actual gold content in 91.6 purity gold jewellery was correct. Since the method of valuation has to be consistant, following that decision we direct the AO to rework the net profit in accordance with the above Tribunal decision . To this extent, this appeal ground is allowed. Disallowance on the making charges, inter alia, on the ground that the vouchers are self-vouched and not verifiable etc the CIT(A) held that inter alia that “apparently, it is an agreed addition and there is no dispute about the observations made by the AO. Thus find that the disallowance is reasonable and accordingly, the addition is confirmed”. The assessee has not let in any material to dislodge the above findings and hence we dismiss this ground of appeal.- Decided against assessee TDS u/s 194C - non deduction of TDS on making charges to various persons - Held that:- . The appellant has not furnished any details regarding the basis of the making charges paid to each of the 23 persons but it appears from the AO's observations that making charges were paid to each person according to the work completed by him. It is also mentioned in the assessment order that the 23 persons who were paid making charges were actually paid as lead persons for the work completed by their team. This lead person in turn paid to the other workers. But as far as the appellant is concerned, the payment is made to the lead person for the work done by himself or his team. Thus there is an implied contract between the appellant and such persons who have been paid the making charges. The provisions of sec 194C are clearly attracted. Even if we assume that the 23 persons who were paid making charges were employees of the appellant, then also in most of the cases TDS provisions are attracted because payment to each individual person exceeded the minimum taxable income. The appellant should have deducted tax u/s 192. The disallowance is therefore, confirmed. - Decided against assessee
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