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2016 (5) TMI 421 - AT - Income TaxAddition made on account of alleged suppression of production - rejection of books of account - GP rate application - Held that:- As during the year under consideration, neither investigation by the DGCEI nor any suppressed production has been detected and admitted by the assessee. Further, the assessee has not moved any petition before the Settlement Commission or any other Excise authorities. In the totality of the above said facts and circumstances and in the absence of any evidence collected by the Assessing Officer of alleged removal of goods without payment of Excise duty, merely on the basis of estimation of alleged suppressed production on account of erratic consumption of electricity, there is no merit in making any addition in the hands of assessee. The Tribunal in Shree Om Rolling Mills Pvt. Ltd. Vs. Addl. CIT [2015 (10) TMI 2316 - ITAT PUNE ] has deleted the addition made in the hands of assessee on account of alleged suppression of production on account of electricity consumption. In the totality of the above said facts and circumstances, we delete addition made in the hands of assessee by the CIT(A) to the extent of 4% of the said alleged production. Accordingly, ground of appeal raised by the assessee against rejection of books of account and confirming the addition made on account of suppression of production by applying GP rate of 4% on the alleged production of sale are allowed. - Decided in favour of assessee
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