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TMI Blog2014 (3) TMI 1003X X X X Extracts X X X X X X X X Extracts X X X X ..... d the audited books of accounts of the assessee on the basis of consumption of high electricity vis-à-vis the production therefrom. No other defects in the books of accounts are pointed out by the Assessing Officer in the assessment order. No cross-verification in this regard was made by the Assessing Officer from the person whose job work is done by the assessee. With regard to consumption of electricity in the month of September 2005, it is true that there was no job work but consumption of electricity in that month is meager only which is due to the fact that the assessee’s office is also situated in the factory building. Even when repair of machinery is being carried out, there will be consumption of electricity without any production. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der. According to which the average job work per unit of electricity works out to 0.0585 Gansadi. In paragraph 4 of the assessment order, the Assessing Officer observed that the average job from month to month varies from 0.0512 Gansadi to 0.0681 Gansadi per unit. After noticing the various discrepancies in consumption of electricity, the Assessing Officer in paragraph 7 of the assessment order concluded that there is uneven job work and causing the suppression of job work. The average job work price is taken at 261.38 per Gansadi (Rs.1,85,13,939 Job work charges / 70,831 Gansadi) and he accordingly worked out total value of suppressed job work at ₹ 5,37,397/- (2056 Gansadi x 261.38 average job work price) and added the same to the to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has denied of having suppressed any job work or having received/earned any job work as alleged by the lower authorities. No such suppressed job work not recorded in the books has been found by the Revenue and the addition made deserves to be deleted. 5] The learned AO and the learned CIT (Appeals) in this regard proceeded on erroneous presumption while making/holding the addition of ₹ 537397/-. 6] a) The learned CIT(Appeals) further erred on law and on facts in invoking Sec. 145(3) in Para 8 of the assessment order when the same was not warranted on facts of the case and was not in accordance with law. This action of the learned CIT (Appeals) is objected to as not in accordance with law and unwarranted on facts of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding year. The variation in electricity consumption is marginal and not higher than the average. Such variations occur in every industry and uniformity in consumption of electricity can never be expected. In support of this, the ld. Counsel of the assessee relied upon the following decisions where consumption of electricity is abnormally high vis- -vis the yield of the product:- i) ITO v. Pragati Fashions, [2012] 18 taxmann.com 269 (Ahd.) ii) N. Raja Pullaiah v. Dy. CTO, [1969] 73 ITR 224 (AP) iii) Vishal Paper Industries v. JCIT, [2013] 32 taxmann.com 247 (Chand Trib) iv) ACIT v. Khambhatta Family Trust [1998} 62 TTJ Ahd 685 Finally, it was pointed out that solely on the basis of variation in electricity consumption, the bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no production, the electricity is also consumed in the office. To sum-up, the Assessing Officer analyzed only job work charges only ignoring the self production made by the assessee and the fact that the electricity is also consumed for office; therefore, the addition of ₹ 5,37,397/- made by the Assessing Officer on doubt and suspicion be deleted. 7. Rival submissions were considered. We have also carefully gone through the various decisions cited by the ld. Counsel of the assessee. From the perusal of these decisions, it can be seen that the mere fact that there was wide disparity in consumption of electricity would not justify the rejection of books of accounts without any supporting material. The Hon ble Allahabad High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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