9911796707
TMI Blog2017 (11) TMI 1926X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs, the Assessing officer asked the assessee to furnish details of daily production of finished goods as well as the details of the manufacturing process involved. The Assessing officer further observed that the amount of electricity consumed was directly related to the production of finished goods. In order to co-relate the consumption of electricity vis-à-vis production shown, the Assessing officer gathered information regarding the consumption of electricity from the Electricity Board. The Assessing officer analyzed the consumption data of electricity vis-a vis the production of finished goods and observed that there were wide variation in ratio of electricity units consumed to per metric tons of finished goods produced during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of the assessee were not correct and he accordingly rejected the books of accounts of the assessee by invoking the provisions of section 145(3) of the Income-tax Act, 1961 (in short 'the Act') and proceeded to frame the assessment in the manner as provided u/s 144 of the Act. He thereafter worked out the unaccounted income of the assessee on account of unaccounted production at Rs. 5909335.74 and added the same to the income of the assessee. 3. Being aggrieved from the above order of the Assessing officer the assessee preferred appeal before the CIT(A). 4. Before Ld. CIT(A), the assessee filed detailed submissions. It was also brought into the knowledge of the CIT(A) that subsequent to the passing of the above stated impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, consumed and that no adverse inference can be drawn from the same also. The Ld. CIT(A) accepted the above contention of the assessee. He observed that for the period the assessee has shown low consumption of electricity that means that the production of finished goods during that period was on the higher side. He accepted the arguments of the assessee that even from the Revenue point of view, the lower consumption of electricity for the same quantum of production per se should be viewed positively and not adversely. He further observed that even in his remand report, the Assessing officer had also not called for an adverse view on this score. The Ld. CIT(A) further observed that once an issue has been decided on merits in a subsequent ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the CIT(A), observing as under:- "6. ...........At the outset, the Ld. DR has brought to our knowledge that on identical issues, wherein the additions made by the Assessing officer on estimation basis as discussed above were upheld by the concerned CIT(A), the assessees preferred appeals before this Tribunal and this Tribunal vide its common order dated 14.2.2017, passed in a bunch of about 85 appeals in the case of M/s Modi Oil & General Mill, Mandi Gobindgrh and Others in ITA No. 149/Chd/2016 and Others while observing that consequent to the report of the Committee constituted by the Principal, Commissioner of Income Tax, Patiala some internal guidelines regarding acceptability of variation upto 15% have been issued and furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee for this year also and to delete the additions made by the Assessing officer on account of unaccounted profits / unaccounted investment made on estimation basis as discussed above. The order of the CIT(A) is, therefore, upheld." 7. The facts and issue involved in this appeal are identical to that in the case of ITO Vs. Shri Harpreet Singh, ITA No. 912/Chd/2017 (supra). So far as the variation of more than 15% in some of the block periods is concerned, the Ld. CIT(A) in our view has rightly held that since the consumption was low during the said period, hence, the same should not be viewed adversely against the assessee as the low consumption would mean higher production and resulting into the higher income and more taxable revenue t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
