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TMI Blog2013 (11) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... diture on ad-hoc basis by the AO, which were deleted by the learned CIT(A). 2. We have heard the learned DR and the learned counsel in detail and perused paper book placed on record. 3. Revenue has raised the following two grounds, which are common in all the years under consideration: "1. The learned CIT(A) ought to have appreciated that the assessee failed to furnish evidence with regard to the expenditure incurred towards electricity and furnace oil expenses. 2. The learned CIT(A) ought to have sustained the disallowance of 25% of the expense incurred towards the electricity and furnace oil expenditure in the absence of necessary evidence." 3. Briefly stated, Assessee company was incorporated on 30-12- 2004 and is engaged in the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "4.4 The submissions of the appellant are perused. As could be seen from the information furnished by the appellant and the assessment orders, the appellant company is engaged in the business of manufacturing of re- rolling steel products for which the fuels used are electricity and furnace oil. As could be seen from the assessment order, the AO's observation that the appellant has not furnished the information on the above issues appears to be not relatable to the facts since the appellant has categorically referred to the submissions furnished on 24.12.2010. 4.5 As regards to the submission of the appellant regarding the non-availability of incriminating information during the course of search & seizure proceedings, it may be relevant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved by the company, are indicated as under: AY Electricity charges Furnace Oil Disallowance @ 25 of col. 2 & 3 Turnover (related to Mfg.) 2005-06 21,68,063 18,34,695 10,00,689 6,57,72,745 2006-07 88,37,212 79,55,695 41,98,227 13,43,35,751 2007-08 90,76,632 74,52,864 41,32,374 14,05,30,797 2008-09 1,23,43,863 1,07,03,256 57,61,780 20,45,43,471 4.7 As could be seen from the above, the percentage of the electricity expenditure vis-à-vis the turnover is hovering around 6.3% to 6.5% and the same for furnace oil expenditure is around 5.23% to 5.92% for the assessment years under reference and there is no abnormality as far as variation of the expenditure under the said heads are concerned. Based on the above analy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of the assessee, without bringing any evidence or adverse findings against the claims of the appellant. Therefore, the additions of Rs. 10,00,690/-, Rs. 41,98,227/-, Rs. 41,32,374 & Rs. 57,61,780/- for AYs 2005-06, 2006-07, 2007-08 and 2008-09, being the disallowance @ 25% of electricity & furnace oil expenditures are deleted. Hence, this ground of appeal for AYs 2005-06 to 2008-09 is treated as allowed." 5. Aggrieved by the orders of the CIT(A), the Revenue is in appeal for the assessment years under consideration. 6. After considering rival contentions and examining the facts of the case, we do not find any reason to interfere with the orders of the learned CIT(A). In fact the AO has no basis to disallow the expenditure, part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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