2013 (5) TMI 456 - AT - Income Tax

Addition on the basis of electricity consumption - held that - addition made in assessment on estimating the consumption of electricity, production, sale and profit thereon is not sustainable. - As both, assessment and the Appellate order, are based on the findings in the case of the sister concern M/s. Boon Industries 2010 (7) TMI 833 - ITAT MUMBAI and as the Tribunal has decided the issue in the case of M/s. Boon Industries in favour of the assessee, appeal filed by revenue dismissed - decided in favor of assessee.

Summary

Issues: Appeals by Revenue against orders of CIT(A) for A.Yrs. 1998-99 and 1999-2000; Common issue involved in both appeals.

Analysis:
1. ITA No. 6869/M/2011-A.Y. 1998-99:
- Grievance of Revenue: CIT(A) erred in allowing the assessee's appeal by following ITAT decision in M/s. Boon Industries without considering the Department's appeal to High Court.
- Assessment Dispute: Dispute over addition of Rs. 11,30,000/- on estimated sales; AO assessed sales at Rs. 1,13,00,000/-.
- CIT(A) Decision: CIT(A) deleted the entire addition based on Tribunal's decision in M/s. Boon Industries; CIT(A) held the addition not sustainable.
- Judgment Basis: Both assessment and appellate orders relied on M/s. Boon Industries case; No distinguishing facts presented by Departmental Representative.
- Final Decision: Tribunal dismissed Revenue's appeal, upholding CIT(A)'s decision.

2. ITA No. 6871/Mum/2011 - A.Y. 1999-2000:
- Identical Issue: Issue in this appeal identical to A.Y. 1998-99 appeal, though quantum may differ.
- Decision Consistency: Following similar reasoning, Tribunal dismissed Revenue's appeal for A.Y. 1999-2000.

In both cases, the Tribunal upheld the CIT(A)'s decisions based on the precedent set by M/s. Boon Industries, leading to the dismissal of the Revenue's appeals for both assessment years. The judgments emphasized the importance of consistency in decisions and the lack of new evidence or arguments to warrant a reversal of the lower authorities' findings.