TMI Blog2013 (11) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the AO, if he intended to do so – Decided against the Revenue. - ITA Nos. 782, 783, 784 & 785/Hyd/2012 - - - Dated:- 13-11-2013 - Shri B. Ramakotaiah And Smt. Asha Vijayaraghavan,JJ. For the Petitioner : Shri P. Soma Sekhar Reddy For the Respondent : Shri B. Sai Prasad ORDER Per B. Ramakotaiah, A. M. These four appeals are preferred by Revenue against the orders of CIT(A)-VII, Hyderabad, dated 28-02-2012 for the assessment years 2005-06 to 2008-09. Revenue has taken two effective grounds in all these appeals on the issue of disallowance of 25% of the expenses incurred towards electricity and furnace oil expenditure on ad-hoc basis by the AO, which were deleted by the learned CIT(A). 2. We have heard the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance cannot be made not only on legal principles and also on facts. It was further submitted that electricity charges were paid to APCPDCL and APGPCL and furnace oil was purchased from HPCL and BPCL. Further, it was submitted that all the amounts have been paid by way of account payee cheques and furnished relevant details along with ledger folios justifying the expenditure. The learned CIT(A) after considering various legal principles, however, was of the opinion that issue can be decided on merit of facts itself. Accordingly, after examining the facts of the case, the CIT(A) deleted the disallowances made by the AO stating as under: "4.4 The submissions of the appellant are perused. As could be seen from the information furnished b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not taken into consideration in disposing these appeals and the appeals are decided on strength/merits of facts. 4.6 Coming to the facts of the case, the appellant is engaged in the business of manufacturing of steel products for which certain expenditures are very much essential and among those the cost of fuels is major expenditure for steel industry. Accordingly, huge amounts were debited under the heads 'Electricity charges' and 'Furnace Oil expenditure' for all the three assessment years under reference. The details of the same for assessment years 2006-07, 2007-08 2008-09 under the said heads, vis- -vis the turnovers achieved by the company, are indicated as under: AY Electricity charges Furnace Oil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce. As submitted by the appellant, there is no place for estimation in the assessments related to search seizure proceedings. Further, as explained by the appellant, the expenditure under the two heads are met/paid by account payee cheques with the amount paid to Government Organisations such as Electricity Board and HPCL, wherein it is always possible to verify the genuineness of the expenditures, so as to explore the possibility of disallowances, if any. Further, there are no cash payments involved, so as to attract the disallowance of a part of the expenditures in this case. Under the circumstances, I am inclined to accept the submissions of the appellant and hold that there is no ground for making the adhoc disallowance of the expendi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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