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2015 (5) TMI 314 - HC - Income TaxSuppressed production - consumption of electricity for purposes other than production - ITAT confirmed CIT(A) order directing AO to apply the gross profit at 23 per cent. on the total turnover of ₹ 93,26,096 for the purpose of determining income from manufacturing against the gross profit shown by the assessee at 8.78 per cent. and confirmed the addition of ₹ 13,25,728.- Held that:- The findings recorded by the Commissioner of Income-tax (Appeals) and the Tribunal were not shown to be erroneous or perverse in any manner by the learned counsel for the Revenue. Further, in the judgment of the apex court in Melton India's case (1997 (1) TMI 471 - SUPREME COURT OF INDIA ), it was held that consumption of electricity can be one of the factors for drawing an inference that the assessee's intention to avoid tax was there. However, in the light of the findings noticed hereinabove, the addition on the basis of the gross profit rate of 23 per cent. on the total turnover of ₹ 93,26,096 in the facts and circumstances of the present case could not be faulted. No substantial question of law arises - Decided against revenue.
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