Pr. Commissioner of Income-tax, Surat - 1 v. Ganga Fashion Pvt. Ltd
[Citation -2017-LL-0904-9]
| Citation | 2017-LL-0904-9 |
|---|---|
| Appellant Name | Pr. Commissioner of Income-tax, Surat - 1 |
| Respondent Name | Ganga Fashion Pvt. Ltd. |
| Court | HIGH COURT OF GUJARAT AT AHMEDABAD |
| Relevant Act | Income-tax |
| Date of Order | 04/09/2017 |
| Judgment | View Judgment |
| Keyword Tags | question of law • oral order • labour charge • gross profit rate • rejection of books of accounts |
| Bot Summary: | 145(3) of the Income Tax Act ignoring the facts that the Assessing Officer has demonstrated the defects in labour charges/expenses, which are the major ingredients in working of gross profit in the instant case 2. Issues pertain to labour charges and ultimate Gross Profit ratio declared by the assessee for the assessment year 2007 2008. The Assessing Officer was of the opinion that there was sharp increase in labour charges. After hearing the assessee rejected the books of accounts and disallowed the part of the labour charges. CIT(Appeals) as well as the Tribunal both found that there was no justification in doing so. The Tribunal while confirming the view of the CIT(Appeals) noted that eventually the assessee company had achieved better result by reshuffling the labour force and the profit ratio of the year under consideration had improved as compared to earlier years. Commissioner(Appeals) as well as the Tribunal having concurrently come to factual findings, no question of law arises. |