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2016 (2) TMI 1262 - AT - Income TaxSuppressed production - Assessment us 153A - high consumption of electricity in assessee’s case - HELD THAT:- AO has taken sufficient pains in referring the matter to the Chairman and Managing Director of Sponge Iron India Ltd., and also being examined by a Technical Officer of the said company, but there is a disclaimer by the company itself that those statements made by the Technical Officer is based on his personal experiences and cannot be used adversely. That it self takes away the basis of AO’s working. Not only that, AO himself accepts that assessee’s consumption of 1,260 KWH is on the basis of the production figures as shown in AY. 2001-02. He has taken that year as basis for arriving at the production in all the impugned assessment years including the later year of 2006-07 to 2008-09 (post search) on the same basis. He has not considered the objections raised by assessee at all. Moreover, as explained by assessee’s counsel and also considered the Ld. CIT(A), the various show cause notices issued by the Excise Department have been more or less settled in favour of assessee and no adverse view can be taken on the basis of the show cause notices. It has no bearing on the sales figures of assessee, as there is no case of Central Excise for any suppressed production. Even though, Ld. DR relied on the Central Excise case press note before us, it is a case by the Central Excise Department for suppressed production on a meticulous enquiry by the officer which was upheld by the Tribunal. In this case, in spite of conducting search and seizure operations, no incriminating material was found. There is no scope for any addition being made in the present case. As rightly contended by the Ld. Counsel, Books of Accounts were not rejected. The addition made by the AO is purely on the basis of estimation of power consumption and supposedly suppressed production cannot be sustained in the absence of any evidence on record. Keeping these aspects in mind, we uphold the order of the Ld. CIT(A) and reject the Revenue’s grounds.
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