2011 (1) TMI 936

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... "[A] Whether the Appellate Tribunal is right in law and on facts in deleting the disallowance of Rs. 8,17,812/- made by the Assessing Officer out of job work expenses?   [B] Whether the Appellate Tribunal is right in law and on facts in directing Assessing Officer to recompute the deduction in the ratio of finished goods to the purchases of finished goods to the purchase of finished goods to the purchase of raw material as mentioned in Schedule II annexed to audit report?"   3. The assessment year is 2000-01 and 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 Office....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d ESI from the payments made to the labourers. The Assessing Officer had not proved that any part of money that had been paid to the labourers/workers had come back to the assessee in any form. It was further noted that the Assessing Officer had not examined the workers to prove that the payments had not been made to them as claimed by the assessee and as such, the Assessing Officer had not brought any adverse material to conclude that the job charges paid were not genuine and that the disallowance had been made on estimate. It was also noticed 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat additional work was carried out by the assessee through labourers and carpenters who had added value to the goods and made them look good andartistic. Accordingly, the Commissioner [Appeals] directed the Assessing Officer to accept the working of deduction under section 80HHC [3][a] as claimed by the assessee. In revenue's appeal, the Tribunal, partly allowed the appeal and directed that the export of traded goods and manufactured goods be computed in the ratio of purchases of finished goods to the purchase of raw material as mentioned in the Schedule-II annexed 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] ....