Pr. Commissioner of Income-tax, Surat I v. Ganga Fashion Pvt. Ltd
[Citation -2017-LL-0926-7]
| Citation | 2017-LL-0926-7 |
|---|---|
| Appellant Name | Pr. Commissioner of Income-tax, Surat I |
| Respondent Name | Ganga Fashion Pvt. Ltd. |
| Court | HIGH COURT OF GUJARAT AT AHMEDABAD |
| Relevant Act | Income-tax |
| Date of Order | 26/09/2017 |
| Judgment | View Judgment |
| Keyword Tags | question of law • labour charge |
| Bot Summary: | Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 23.12.2016 raising following question for our consideration: Whether on facts and circumstances of the case and in law, the Appellate Tribunal is justified in deleting the addition of Rs.1,87,39,810/ made by the Assessing Officer on account of inflated labour charges in spite of the failure on the part of the assessee to furnish satisfactory explanation/evidences as regards to increase of almost six times in labour charges as compared to A.Y. 2006 07 whereas activity and production of the assessee company remained almost same 2. From the impugned judgment of the Income Tax Appellate Tribunal, we notice that the Tribunal had relied on its earlier judgment in case of this very Page 1 of 2 HC-NIC Page 1 of 2 Created On Tue Oct 31 10:04:04 IST 2017 O/TAXAP/762/2017 ORDER assessee. Issues pertain to labour charges and ultimate Gross Profit ratio declared by the assessee for the assessment year 2007 2008. 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. |