TaxTMI 
TaxTMI 
2016 (11) TMI 131
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....d however, remitted the matter to the assessing authority insofar as quantification of escaped assessment is concerned. Sri Agrawal has invited the attention of the Court to the findings recorded by the Tribunal to submit that the sole ground upon which the books of accounts maintained by the assessee came to be rejected was that there was excessive electricity consumption and the same did not appear to be commensurate with the declared quantity of production. He submits that the solitary ground on which the respondents proceeded to reject the books of accounts maintained by the assessee is clearly unsustainable in the eyes of law and in light of the principles as laid down by this Court in M/s Speed Rollers Pvt. Ltd. Vs. Commissioner of T....
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.... books of accounts maintained by the assessee. The law on the subject has been discussed in detail in M/s Speed Rollers Pvt. Ltd. Vs. Commissioner of Trade Tax , which also noticed the earlier precedents rendered by this Court as well as the Supreme Court. After noticing the said judgments, this Court held as follows: 8. A Division Bench of this court way back in the year 1971 in the case of M/s Mahabir Prasad Jagdish Prasad Vs. The Commissioner of Sales Tax 1971 U.P.T.C.-43 held that the consumption of electricity constitute a good material for initiating proceedings under Section 21 of the U.P. Sales Tax Act but the consumption of electricity alone may not justified for rejecting the accounts particularly when the account books have bee....
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....een rejected, the turnover has to be determined by best judgment assessment and element of guess work is always there. In the case of best judgment assessment, the consumption of electricity may be taken into consideration while determining the turnover." 12. Even the Apex Court in Melton India Vs. Commissioner of Trade Tax U.P. 2007 U.P.T.C. 401 approved that where books of accounts of the assessee have been rejected for various reasons and there is excessive power consumption, it prima facie establishes the assessee's intention to suppress the production and the turnover and thus impliedly approved estimation of assessment on the basis of electric consumption." In light of what has been consistently held by this Court, it is appa....