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2019 (11) TMI 514 - ITAT CUTTACKAddition on account of suppression of production - high consumption of electricity - HELD THAT:- AO has proceeded to make addition on the basis of suspicion and noticing the factum of higher consumption of electricity and lower production which could be a case of strong suspicion but it is also settled law that suspicion, however strong, cannot take the place of evidence against the assessee for making a sustainable addition. CIT(A) was right in deleting the addition by following his own order for the preceding assessment year 2011-12, which was self-explanatory and justified and reasonable. We also find that there is allegation of the Assessing Officer regarding suppressed production, which were sold in the market. CIT(A) was also quite correct in taking the cognizance of proposition rendered by ITAT Hyderabad Bench in the case of Balaji Steel Rolling Mills (P) ltd [2016 (2) TMI 1262 - ITAT HYDERABAD] wherein, held that the electricity consumption depends upon various factors like type of quality of scrap used, number of break downs, quality of labour/supervisory staff, diligence of management etc and thus, it was held that the action of the AO estimating the production of assessee on the basis of alleged excessive consumption of electricity is erroneous and fallacious. - Decided against revenue
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