TaxTMI 
TaxTMI 
2013 (11) TMI 815
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....owards 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 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 inc....
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....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 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 cours....
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....under the said heads, vis-à-vis the turnovers achieved 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 a....
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....t there is no ground for making the adhoc disallowance of the expenditures which are essentially connected to the 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 reas....