2020 (6) TMI 684

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..... e assessment year 2004-05, they filed their returns reporting a total turnover of Rs. 76,07,110/- and claimed exemption on the same. On receipt of the same, the respondent, after verification of the books of accounts, passed the assessment order on 10.10.2007 determining the total and taxable turnover of the petitioner at Rs. 76,07,110/- and Rs.nil respectively, after granting exemption. Thereafter, without issuing any notice, the respondent served an assessment order dated 31.05.2012 to the petitioner, alleging that as per the inspection conducted on 27.07.2004 by the Enforcement Wing Officials, it was found that there was suppression of sales turnover to the tune of Rs. 1,17,77,400/- on the basis of electricity consumed during the assessm .....

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..... have not produced the same for verification and hence, the original assessment was revised determining the turnover to the best of judgment based on power consumption and hence, there is no arbitrariness or illegality in the order impugned herein. Stating so, the respondent sought to dismiss this writ petition. 4. The learned counsel for the petitioner submitted that the respondent has arbitrarily revised the original assessment on the basis of the consumption of electricity by the petitioner. According to him, the electricity consumption cannot be adopted as the sole basis for rejecting the income tax returns and for making an estimate of the taxable turnover of the petitioner. In support of his contention, he relied on various decisions .....

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..... by the petitioner for the relevant year. 8. It is the specific plea of the learned counsel for the petitioner that the respondent before making revised assessment, has not provided reasonable opportunity to the petitioner to furnish the books of accounts maintained for the relevant year. Whereas, according to the respondent, though the petitioner was summoned to produce the books of accounts, they have not turned up and hence, the order impugned herein, came to be passed, based on the power consumption. 9. It is well settled that the electricity consumption cannot be adopted as the sole basis for rejecting the accounts of the assessee and for making an estimate of the taxable turnover of the assessee. In this regard, this Court would like .....

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