Case Law Details
Brief of the case:
Books of account cannot be rejected only on the basis that qualitative and piece wise records of diamonds have not been maintained;
ITAT held in Dy CIT Vs Ms Nevil Gems that if the assessee had maintained quantitative details of diamonds but had not qualitative and piece-wise details then in that case books of account could not be rejected because it was not necessary to maintain qualitative records or piece wise details as per act what was necessary was to maintain such quantum of books of accounts through which AO could calculate the total income of the assessee.
Labour expenses cannot be disallowed if the self-generated voucher by the assessee has been counter signed by the labour;
ITAT held in Dy CIT Vs Ms Nevil Gems that as the AO had not any cogent proof by which AO could prove that the labour rate claimed by assessee was excess then AO could not disallow the rate of assessee claimed by him though the assessee had not produced any bill of the labour contractor but had produced the self-generated bill by the assessee which was countersigned by the labour. Moreover as the AO had called the labour contractor who confirmed the amount received by them which was shown by the assessee in its books of account. So the labour expenses could not be disallowed.
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