TaxTMI 
TaxTMI 
2014 (3) TMI 1003
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....allied. For the assessment year under appeal, it filed Return of Income on 31.10.2006 declaring total income at Rs. 8,52,741/-. Alongwith this return of income, audit report in form No.3CA and 3CD, balance sheet, P&L A/c. and other relevant accounts and papers were also filed. During the course of assessment proceedings, the Assessing Officer called for the details of month-wise electricity consumption vis-à-vis job work. On verifying these details, the Assessing Officer noticed that job works from month to month were uneven and there were irregularities. The picture emerged is reproduced by the Assessing Officer in paragraph 3 of the assessment order. According to which the average job work per unit of electricity works out to 0.058....
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....earned ACIT, Circle-1, Rajkot (hereinafter referred to as AO) erred in law and on facts in making the addition of Rs. 537397/- alleged to be on account of suppressed job work receipts when there were no such receipts ever earned by the appellant or found by the Revenue; the learned CIT(Appeals) erred in upholding the decision of the AO in this regard. The addition of Rs. 537397/- deserved to be deleted on all counts. 3] The learned AO and the learned CIT(Appeals) in this regard proceeded on erroneous presumption and premises and the addition made is only on suspicion and surmises and deserves to be deleted. 4] The assessee has denied of having suppressed any job work or having received/earned any job work as alleged by the....
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....mitted that electricity by itself alone cannot be yardstick for estimating the job work of gasadi. In the assessment order, the Assessing Officer applied a straight jacket formula for estimating job work and proceeded on erroneous premises and made the addition of Rs. 5,37,397/- on doubt and suspicion which deserves to be deleted. 4. Continuing his arguments, ld. Counsel of the assessee pointed out that books of accounts of the assessee are duly audited u/s 44AB of the Income-tax Act, 1961. No defects are pointed out by the auditors in its report u/s 44AB. The GP declared in the assessment year is better as compared to the immediate preceding year. The variation in electricity consumption is marginal and not higher than the average. Such....
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.... the Assessing Officer rightly rejected the books of accounts u/s 145 of the Act and made addition of Rs. 5,37,397/- on account of suppression of job work receipts. 6. In rejoinder, the ld. Counsel of the assessee submitted that the assessee is engaged in its own manufacturing also apart from doing the manufacturing for others on job work basis. In some months there was self production and there were no job work charges. The Assessing Officer has worked out the average electricity consumption only with reference to job work and ignored the self production. Apart from this, the assessee's office is also situated in the factory premises. Even if there is no production, the electricity is also consumed in the office. To sum-up, the Assessin....