TMI Blog2014 (12) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee may provide a ground to the Revenue to investigate the fact properly but that by itself does not empower to disallow genuine loss when no defect in the books of accounts is found. Thus, in our considered opinion, the addition confirmed by the CIT(A) is not sustainable on the facts of the instant case. We, therefore, delete the addition and allow this ground of appeal of the assessee. - ITA No. 3412/Ahd/2010 - - - Dated:- 19-12-2014 - SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER Assessee(s) by : Shri Vartik R. Choksi, AR Revenue by : Shri B.L. Yadav, Sr. DR. O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: This is an appeal filed by the assessee agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he process of manufacturing of gold jewellery, loss during the process of studding the gold jewellery with diamonds, and loss during the process of recovery of gold from the residue after manufacture of diamond studded 18, 14 and 10 carat gold jewellery; and that the appellant's claim for its said loss was genuine which did not call for any disallowance, whatsoever. iii. Despite the appellant's undisputed and incontrovertible submissions, the learned CIT (Appeals) erred in confirming the partial disallowance out of the ad-hoc disallowance made by the assessing officer on account of the appellant's claim for conversion / manufacturing loss. iv. The learned CIT (Appeals) erred in partly confirming the adhoc and arbitra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after manufacture of diamond studded 18, 14 and 10 carat gold jewellery. The assessee also explained that its claim for the said loss was genuine which did not call for any disallowance, whatsoever. During the course of assessment proceedings, the assessee also relied upon the directions issued in this regard by the Government of India, Ministry of Commerce and Industry, Department of Commerce according to which 9 per cent of wastage of gold / platinum / silver content in studded jewellery is allowable; and the assessee furnished the copy of the said directions to the Assessing Officer. However, notwithstanding the assessee's incontrovertible submissions, the Assessing Officer allowed the assessee's claim for conversion / manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer. It has also been explained that as per the directions issued in this regard by the Government of India, Ministry of Commerce and Industry, Department of Commerce, 9 per cent of wastage of gold / platinum / silver content in studded jewellery is allowable; and the copy of the said directions has also been furnished to the CIT(Appeals). Copy of the written submissions filed with the CIT (Appeals), as also copy of the directions of the Government of India, Ministry of Commerce and Industry, Department of Commerce are also placed on record. 5. After considering the above-mentioned detailed submissions, which have not been controverted by the CIT (Appeals), vide his impugned order, the CIT (Appeals) has allowed the assessee& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Difference Rs. 1 Gold 24K from 18K, 14K, 10K 1019.610 587.33 598854 7.59% 1% 78900 519954 2 Silver 1111.12 10.57 11744 18.68% 1% 629 1115 3 Gold 24K to 18K, 14K, 10K gold 319.628 765.62 244707 1.56% 1% 156863 87844 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
