Electricity consumption-based estimation of unaccounted production remanded for fresh adjudication after prior similar dispute

Rejection of books of account and addition based on alleged variation in electricity consumption were held to require fresh examination because the dispute arose from the same estimation method previously sent back for reconsideration. The matter was remanded for adjudication in accordance with law and applicable internal guidelines, with a proper opportunity of hearing to be given. The additions were therefore not finally sustained at this stage.

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Issues: Whether the rejection of books of account and the addition made on account of alleged variation in electricity consumption required interference.

Analysis: An identical dispute for an earlier assessment year had already been sent back for fresh adjudication, and the present controversy arose from the same basis of estimation of unaccounted production by reference to power consumption. Following that earlier decision, the matter was found to require reconsideration by the Assessing Officer in accordance with law and the applicable internal guidelines, after granting a proper opportunity of hearing.

Conclusion: The issue was remanded to the Assessing Officer for fresh adjudication; the additions were not finally sustained at this stage.

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