TMI Blog2011 (1) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... corded 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 circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the relevant accounting period is the previous year 1.4.1999 to 31.3.2000. 4. In relation to proposed question [A], which relates to disallowance of Rs. 8,17,812/- out of job work expenses, the Assessing Officer noticed certain defects in the vouchers in respect of the job work charges paid by the assessee. The Assessing Officer called upon the assessee to explain the defects in the vouchers and explain how the payments could be justified in the absence of quantitative details of the job work done. After considering the explanation given by the assessee, the Assessing Officer disallowed 20% of the total job charges of Rs.40,89,062/-. The assessee carried the matter in appeal before the Commissioner [Appeals], who deleted the disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that on similar facts, no disallowance had been made in the earlier years. 7. 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. 8. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnexed to the audit report. Being aggrieved, the revenue is in appeal before this court. 10.From the facts noted herein above, it is apparent that the Commissioner [Appeals] had allowed the appeal preferred by the assessee and held that the assessee was carrying on manufacturing activities in respect of all the goods purchased by it, whether finished goods or raw material. The Tribunal, after appreciating the evidence on record, has found that observation of the auditor in Form No.10CCAC goes to show that the assessee did not maintain any record separately for goods traded and manufactured by it. According to the Tribunal, this note of the auditors spelt out actual facts which had not been disputed by the assessee at any stage. In light ..... X X X X Extracts X X X X X X X X Extracts X X X X
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