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2019 (11) TMI 922 - AT - Income TaxLower yield declared by the assessee - excessive consumption of electricity / power / furnace - variation in consumption of electricity, furnace oil vis-à-vis production of finished goods - yield declared by the assessee and information regarding yield declared by other assesses, as received from the DCIT-1(2), Raipur was compared with reference to the uniform and standard yield adopted by the Assessing Officer and the result of the comparison so made are on record - HELD THAT:- CIT(A) had made exercise to bring out the percentage of yield declared by the other assessee engaged in similar line of business and nowhere the yield was 89%. AO also gave no basis for its calculation of the yield at 89%. There was no scientific or logical basis in the exercise conducted by the AO. The submissions made by the assessee, were also summarily rejected by the AO which is therefore, not in accordance with judicial principle as herein above enshrined in the various judicial pronouncements. We have also observed in the case of ACIT-1(1) Raipur Vs. Ramesh Steel Industries [2014 (12) TMI 1353 - ITAT RAIPUR] the AO made addition as he noted that in the year under appeal, the assessee had consumed more units of power as compared to the last two assessment years. The Tribunal observed that “consumption of power in itself is not an evidence to prove or disprove the production of finished goods.” We further observe that in the case Sulabh Marbles (P.) Ltd. [2006 (7) TMI 653 - HIGH COURT OF RAJASTHAN] has held that “disparity in electricity consumption cannot be the criteria for rejection of accounts and for making ad-hoc additions. The assessee had maintained regular books of account and the AO had not come across any unaccounted purchase or suppressed sale. In these circumstances, only on the basis of power consumption, no addition could be or sustained.” It is apparent from the records that the Assessing Officer has not brought on record any evidence stating lower or suppression of sales by the assessee. He tried to support his case by showing deficiency in power consumption by the assessee. But the Hon’ble High Courts have held without any direct corroborative evidences on low yield or suppressed sales, the disparity of power consumption cannot be the sole ground or reason for making addition by the Assessing Officer. CIT(A) is absolutely correct and therefore, the same does not call for any interference. Thus, ground relating to “issue of the lower yield declared by the assessee” in all the appeals for all the assessment years are therefore dismissed. Giving credit of cash seized during the course of search operation u/s.132 as prepaid taxes while computing tax liability of the assessee - HELD THAT:- In the computation of tax such adjustment was not there and therefore, it was right for the Ld. CIT(A) to direct the Assessing Officer for such adjustment to be made in the hands of the assessee while determining tax liability. In view of the matter, we sustain the relief provided to the assessee by the Ld. CIT(A)
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