On appeal the Tribunal held that :

• Provisions of Sec 194C are applicable when the assessee has paid or credited any charges covered thereunder. When no payment is debited or credited to respective party’s accounts, then such payment cannot be considered within the ambit of sec 194C or any other TDS provisions.
• There is no uniform yardstick to quantify the wastage in any process of manufacturing of goods. Further wastage allowed by the assessee to goldsmith is a matter of business prudence/commercial expediency and the same cannot be called upon to question by the AO unless he has evidence to prove that the same is excessive.
• Since assessee has neither debited making charges into P & L a/c nor credited any amount to parties’ account, the question of application of sec 194C does not arise.

•       Since no Independent evidence has been brought on record by the AO to support his findings, as against assessee having produced necessary evidences to prove that making charges has been separately paid and TDS deducted wherever applicable, the addition cannot be sustained.  (AY. 2013-14)