Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 1003 - AT - Income TaxAddition on account of suppressed job work receipts - rejection of books of accounts - Held that:- The Hon’ble Andhra Pradesh High Court in the case of N. Raja Pullaiah v. Dy. CTO, (1969 (2) TMI 22 - ANDHRA PRADESH High Court ) and Kerala High Court in the case of St. Teresa’s Oil Mills v. State of Kerala, reported in (1969 (11) TMI 9 - KERALA High Court ) has also held that books of account cannot be rejected, on the ground of consumption of electricity being abnormally high vis-à-vis the units of production. In the impugned orders, the Assessing Officer and the ld. CIT(A) in substance rejected the audited books of accounts of the assessee on the basis of consumption of high electricity vis-à-vis the production therefrom. No other defects in the books of accounts are pointed out by the Assessing Officer in the assessment order. No cross-verification in this regard was made by the Assessing Officer from the person whose job work is done by the assessee. With regard to consumption of electricity in the month of September 2005, it is true that there was no job work but consumption of electricity in that month is meager only which is due to the fact that the assessee’s office is also situated in the factory building. Even when repair of machinery is being carried out, there will be consumption of electricity without any production. Considering all these factors, we are of the view that no case is made out for rejecting the books of accounts and for sustaining the addition as proposed by the Assessing Officer in the assessment order; we, therefore, delete the addition made in the assessment order. - Decided in favour of assessee.
|