TMI Blog2016 (8) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... stimate 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 - TAX APPEAL NO. 682 of 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is an individual and is engaged in the business of manufacturing of grey cloth. For the assessment years 2007-08, the assessee had filed return of income declaring total income of ₹ 2.42 lacs. The return was taken under scrutiny by the Assessing Officer. He noticed that the assessee had claimed weaving charges of ₹ 3.85 crores. He called upon the assessee to justify such expenditure. On the ground that the assessee failed to do so and that the expenditure was extremely high, the Assessing Officer disallowed 25% thereof or ₹ 96.35 lacs and adding excise duty component to the same, computed the total income of ₹ 98.98 lacs. The Assessee carried the matter in appeal. The CIT(Appeals) gave partial relief to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We find that in the line of business of the assessee of manufacturing of grey cloth, finished cloth could on not be sold unless it is weaved and processed and the cost of weaving and processing is the direct cost which has to be incurred by the assessee. Purchase of yarn cloth and sale of grey cloth could not be disputed by the Revenue. The CIT(A) has given a finding that the assessee has given copy of list of parties to whom weaving charges were paid in which complete address have been given and has also filed copies of bills of job work expenses containing names and address of such parties. The CIT (A) has also recorded that the AO has not pointed any defect in the purchase bills or sales bills or job work charges bills except saying t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce made by the AO seems to just and fair, and is accordingly confirmed. In this view of the matter, we see no merit in the ground of the appeals of the assessee and the Revenue, and they are accordingly dismissed. 3. Likewise, the assessee's appeal was dismissed as under: 9. Both the parties before us submitted that the issue and facts of the case in this cross appeal of the assessee and the Revenue are identical with the issue and facts of the case in the case of Kailashchandra Maliram Kanodia for the same A.Y. 2007-08 in ITA No. 345/Ahd/2011 and 395/Ahd/2011. We have considered rival submissions. In view of our decision in the foregoing paras of this order while disposing of the appeal of the assessee and the Revenue in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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