TaxTMI 
TaxTMI 
2013 (10) TMI 775
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....except amount involved, we have heard these appeals together and dispose of them by a common order for the sake of convenience. 3. We consider it prudent to state the facts relating to assessment year 2003-04. The specific ground of appeal taken by assessee in assessment year 2003-04 is as under: "1. On the facts and circumstances of the case and in law the Ld. CIT(A) erred in confirming the addition Rs. 13,16,649/- made by the Ld. A.O in respect of alleged inflated labour charges without appreciating the fact that the appellant had paid consolidated charges to the contractors towards Godown charges, inward transport, octroi, warpins, sizing, beam setter, dropin charges, weaving, jobber, clipping, folders, outward transport, Electrici....
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....name and cash withdrawn by the appellant himself. Returns of income were also filed in the name of these persons. These persons had affixed their signatures on blank cheques. The bank accounts were found to be opened and operated by none other than employer. None of the employees was having any idea about the transactions in bank accounts. One Shri Dilip Prajapati, in a statement recorded during search in the factory premises at Park Compound admitted that, he had not done any job work for the appellant. In reply to a specific question, Shri Kalpesh Gada admitted that, karigar wages are paid on meter basis @ Rs.1.25 per meter. Further finding of the AO was that, the total labour charges claimed by the group over a period of 4 years from 200....
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....uments / evidences/ recordings on loose papers, books of accounts etc found during the course of search represent the true state of affairs of the assessee's business existing on date of search. It is an admitted fact that, instances of large scale inflation of expenses were found during the course of search and the assessee group had declared an income of Rs 50.50 lacs on account of such unverifiable expenses. What remains to be seen now is whether the said disclosure was commensurate with the discrepancies found or is just an eye wash. It is pertinent to point out at this stage that, the family members in whose names labour charges were booked were mere conduit for siphoning off of funds and had not rendered any services to the said busin....
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....e compulsorily levied upon. Thus, from the quantitative details, the total quantity manufactured during the year is determined, and the quantum of inflated expenses recorded in the books of accounts, after allowing a margin of Rs.3/- per meter (Rs.1.5 for labour + Rs.1.5 for other incidental expenses like transport, power, beam drawing etc) is worked out as below :- Closing stock of Fabric = 12875, meters, Rs.309255/- Average price=Rs.309255/12875 = Rs.24 Sales shown is Rs.1132121/- @Rs.24 per meter, quantity of Fabric manufactured = 1132121/24=47172 meters. Labour charges claimed Rs.1458165/- Labour charges allowable @ Rs.3 per meter = 47172 meters x 3 = Rs.141516/- Disallowance Rs.1458165- Rs.141516/-=Rs.1316649/- ....
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....to decide whether the labour charges claimed by assessee are correct. He submitted that the Tribunal by following the order in the case of another family members of Group of Mr.Alpesh B. Gada in ITA Nos.893 to 896 and 1487/Mum/2011 for Assessment Years 2003-04, 2005- 06, 2006-07, 2008-09 & 2007-08 by its order dated 25.11.2011 by following the order dated 29.7.2011 (supra) and also the case of M/s B.K.Tex Corporation V/s ITO in ITA Nos.371 and 370/Mum/2011 for Assessment Years 2004-05 and 2005-06 dated 29.7.2011 restored the matter to AO and furnished a copy of the said order to substantiate his submissions. We consider it prudent to refer para 29 of the said order which reads as under : "29. Coming to ground no.2, from the seized docume....
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....itaben Gada V/s ITO in ITA No.3671/Mum/2011 for assessment year 2002-03 vide order dated 12.4.2012 again restored the matter to the AO for his fresh consideration and to substantiate his submission he filed a copy of the said order. 8. In view of above, ld. AR submitted that the matter be restored to AO for his fresh consideration in the light of the earlier orders of Tribunal on the same facts and identical issue. 9. Ld. DR submitted that he has no objection in restoring the matter to the AO. 10. On consideration of the submissions of ld. Representatives of the parties and the earlier orders of the Tribunal in the group cases of assessee (supra), we respectfully following the earlier orders of Tribunal restore the matter of inflat....