TaxTMI 
TaxTMI 
2023 (1) TMI 446
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....t, 2008 (hereinafter called as "Act of 2008") have been filed assailing the order dated 12.05.2011 passed by the Tribunal dismissing the second appeal of the Assessee being Second Appeal No.104 of 2011 and allowing Second Appeal No.38 of 2011 and Second Appeal No.47 of 2011 filed by the Revenue. 3. The revision No.486 of 2011 was admitted on 07.07.2011 on the question, "whether on account of higher consumption of electricity during the period 01.01.2008 to 31.03.2008, the books of account of Assessee-revisionist could be rejected?" 4. Revision No.490 of 2011 was admitted on the question "whether on account of higher consumption of electricity during the Assessment Year 2008-09, the books of account of Assessee-revisionist could be rej....
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....8 at 20.887 units per quintal. Against the order of first Appellate Authority, one appeal was filed by the Assessee being Second Appeal No.104 of 2011 and the other appeal filed by the Revenue being Second Appeal No.47 of 2011. Hence the present revisions. 6. Both the revisions are being heard together with the consent of counsel for the parties and are being decided by the common order. 7. Sri Shubham Agrawal, learned counsel for the revisionist submitted that the Assessing Authority as well as Tribunal could not have rejected the books of accounts only on the ground of excessive consumption of electricity. He submitted that no adverse inference was drawn by the Assessing Authority with regard to filing of monthly return. According t....
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....ther hand, for the period 01.01.2008 to 31.03.2008, the total electricity consumed was 1,83,625 units and total grinding of wheat, which was done, was 8791.14 quintals. Thus, the electricity consumed for each quintals of wheat was 20.887 units. He further contended that the Tribunal had rightly rejected the appeal of the Assessee for the Assessment Year 2008-09 and allowed the appeal of the Tribunal as during the period the Assessee had disclosed lessor turn over in spite of higher consumption of electricity. 9. According to learned Standing Counsel, the Assessing Authority as well as Tribunal after recording a finding that for the period 01.04.2007 to 31.12.2007, the consumption per quintal for grinding wheat was 8.840 units while for t....
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....e Assessee. The judgment of Mahabir Prasad Jagdish Prasad (supra) was followed by another Division Bench in M/s Mahashakti Oil Mills, Bisheshargani, Varanasi (supra) wherein the proceedings were under Section 21 of Act of 1948 and the Court was of the view that if no material was brought by the taxing authorities on record, there was no justification for rejecting the books of accounts. 12. The said judgment was subsequently followed in M/s Sunita Ispat Pvt. Ltd. (supra) and the Court found that excessive electricity consumption cannot be a ground for rejection of books of accounts. 13. In M/s Abhinav Steels Pvt. Ltd. (supra) also the coordinate Bench of this Court, following the earlier decisions, had found that the books of accounts....
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....fication given by the Assessee to the extent of electricity being consumed by the officials at their residential premises for running Air Conditioners, fans and light, cannot be accepted, as the period for which explanation has been given is the winter time when there is no use of Air Conditioners and the domestic consumption cannot be believed on such a higher side. 17. In Melton India (supra), the Apex Court while considering the case of excessive consumption of electricity, when compared to production, found that when electricity consumption goes up, a reasonable inference can be drawn that production have gone up. If the electricity consumption is going up, but the production is seen to be going down, a reasonable inference can, prim....
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....ion of the factory was done on 10.06.2010 and it was found that machinery was old and there was fault in the electricity being supplied to the factory. This report is of the year 2010 filed before the first Appellate Authority and that too by a private person. The report cannot be taken into account as the relevant period is 01.01.2008 to 31.03.2008. Subsequent report after two and a half years cannot be taken into account and the findings recorded by the first Appellate Authority relying upon said report was rightly negated by the Tribunal. 19. Thus, in the light of the constant view of this Court and Hon'ble Apex Court, it is apparent that the Assessing Authority had rightly rejected the books of accounts on the basis of high consumpti....