2019 (9) TMI 1511

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....allowing relief for Rs. 4,38,86,292/- being addition made by the AO on account of suppressed production on the basis of electricity consumption. 3. The Ld. Commissioner of Income-tax (A)-I erred in directing that no addition can be made merely on basis of electricity consumption formula. 4. The CIT(A)-I erred in ignoring the fact that the department is in appeal before Hon'ble Bombay High Court, Bench at Aurangabad in assessee's case for earlier years. 5. The order of the CIT(A) be vacated and order of the AO be restored. 6. The appellant craves leave to add, amend or alter any other ground at the time of hearing." 3. Briefly stated the relevant facts include that the assessee is engaged in the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing Officer and prayed for setting aside the order of the CIT(A). 6. On the other hand, rebutting the claim of the assessee, ld. AR for the assessee relied on the order of the CIT(A) and filed a copy of the decision of the Tribunal of this Bench in the case of Rhishi Steel & Alloys Private Limited vs. Addl. CIT vide ITA Nos.219 to 221/PUN/2012 for the assessment years 2006-07 to 2008-09 and others dated 05.08.2015 and submitted that, on identical facts, the appeals of the Revenue was dismissed by the Tribunal. 7. We heard both the sides on this issue and perused the facts and orders of the revenue authorities and the decision of the Tribunal placed before us. Considering the same, we find there is no dispute on the fact that the Asses....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....38,86,292/- on the basis of wrong presumption/assumptions. I find it quite baffling that the A.O. had levelled the allegation of unrecorded sales against the appellant company on the basis of some mathematical exercise without any corroborative evidence on record. This allegation of the A.O. has remained unsubstantiated and it is nothing more than a sweeping statement. The production of the assessee company is liable to Central Excise Duty and hence, the assessee has also maintained records and register as prescribed under Central Excise Act. Considering the judicial ratios, it is clear that no addition can be made merely on basis of electricity consumption formula. This view is also supported by the decisions of various Tribunals such as J....