TaxTMI 
TaxTMI 
2018 (2) TMI 967
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....e manufactured. During assessment proceedings, the Assessing Officer noted that the amount of electricity consumed was directly related to the production of finished goods. In order to co-relate the consumption of electricity viz-a-viz, the production shown, the Assessing Officer gathered information regarding consumption of electricity from the electricity board. The Assessing Officer, thereafter, analyzed the consumption data of electricity viz-a-viz, the production of finished goods and observed that there was wide variation in the ratio of electricity units consumed to Per Metric Tonne (hereinafter referred to as 'PMT') of finished goods produced. The AO observed that the electricity consumption PMT of finished goods varied from 0.36 un....
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....rage sales rate,the total unaccounted production was estimated in monetary terms and then adopting the gross profit rate shown by the assessee, the unaccounted profit out of the unaccounted production was worked out. Further, the peak unaccounted production for the relevant month was determined and by multiplying with the average sales rate of finished goods, the unaccounted investment was worked out. The Assessing Officer in this way worked out the total unaccounted investment in unaccounted production at Rs. 63,50,762/- and the unaccounted profit out of unaccounted production at Rs. 4,93,596/-,thereby making addition on account of total unaccounted income of Rs. 68,44,358/-. 4. Being aggrieved with the above order of the Assessing Office....
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.... that the variation in the consumption of electricity units PMT of finished goods of the assessee was less than 15% of the yearly average on higher side whereas it was more than 15% of the lower side. The ld. CIT(A) interpreted the higher variation on the lower side positively and held therefore, that overall variation of consumption of electricity was to be considered within 15% of the annual average consumption PMT of production and considering the recommendation of the committee,accordingly held that the book results shown by the assessee company for the year under consideration needed to be accepted. Therefore, the Ld.CIT(A), set aside the action of the Assessing Officer in rejecting the books of account of the assessee and deleted the ....
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....essing Officer to accept the book results shown by the assessee and to delete the additions made on account of unaccounted profits/unaccounted investment. The ld. Counsel for the assessee drew our attention to the relevant finding of I.T.A.T. at Paras 8 to 10 of the order as under: "8. At the outset, the Ld. Counsel for the assessee 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. ....
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....do not find any infirmity in the order of the CIT(A) while directing the Assessing officer to accept the books results shown by the assessee 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. 10. Since the facts and issue involved in all the other captioned appeals are identical, hence, in view of our findings given above, we do not find any merit in all the appeals of the Revenue and the same are accordingly dismissed." 6. The ld. DR pointed out that there was a distinguishing fact in the present case with the assessee showing variation exceeding 15% on the lower side of the year....