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2020 (11) TMI 767 - ITAT CHANDIGARHUnaccounted investment and unaccounted profit out of unaccounted production - variation of consumption of electricity was more than 15% - Rejection of books of accounts - income estimation - HELD THAT:- No merit in the Revenue s stand that the Assessing Officer’ s three folded action inter alia in rejecting the assessee’ s books of account followed by gross profit element on alleged unaccounted production of ₹ 13,04,677/- as well as unaccounted investment in stock of ₹ 1,62,54,188 78 - Case records indicate that this issue of rejection of books of account based on difference in power consumption of the relevant previous year turning act to be excessive than the so called tolerable limit of 15 % is no more res-intgra. This Tribunal’ s coordinate bench decision ITO Vs M/s Baba Balak Nath Steels [2019 (8) TMI 1587 - ITAT CHANDIGARH] has rejected Revenue’ s identical stand wherein held CIT(A) has accepted the variation of 15% in consumption of electricity per metric ton of finished goods as per the report of the Committee. He has also observed that pursuant to the report of committee, the AO have also followed this norm while making assessment in similar type of cases and have accepted the book results shown by the assesses. No infirmity in the order of the CIT(A) while directing the Assessing officer to accept the books results shown by the assessee for this year also and to delete the additions made by the Assessing officer on account of unaccounted profits / unaccounted investment made on estimation basis - Decided in favour of assessee.
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