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TMI Blog2018 (2) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... d since as per the facts of the present case, the consumption of electricity is less then 15% of the yearly average the decision rendered by the I.T.A.T. in the case of Singla Concast Pvt. Ltd. (supra) will squarely apply to the present case following which we uphold the order of the ld. CIT(A) directing the Assessing Officer to accept the book result shows by the assessee and to delete the additions made on account of unaccounted profits/unaccounted investment. The contention of the ld. DR that the assessee having shown variation of more than 15% on the lower side of the average,we find, merits no consideration, since we agree with the ld. CIT(A) that lower consumption of electricity for the same quantum of production should be viewed p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricity consumption PMT of finished goods varied from 0.36 units and 259.69 units, with the average for the entire year being 158.82 units. He further noted that there were certain days when there was high consumption of electricity but no production of finished goods. It was also observed that there was days on which electricity consumed PMT of finished goods was low but the production of finished goods was very high. When confronted with this aspect the assessee explained that the consumption of electricity was dependent on various factors namely, delay or time lag in the recording of production in books, difference in type and quality of raw material used, power cuts, grid failures, voltage fluctuations, mill condition, motor, break down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,358/-. 4. Being aggrieved with the above order of the Assessing Officer, the assessee preferred an appeal before the CIT(A). During appellate proceedings before the ld. CIT(A), the assessee filed detailed submissions. It was also brought to the knowledge of the CIT(A) that subsequent to the passing of the above stated assessment order,a detailed study was carried out at the instance of the Principal CIT,Patiala, with a view to examine the fluctuation in the consumption pattern of electricity vis a vis production in the rolling mills and induction furnaces of the area, by a Committee headed by the Additional Commissioner of Income Tax, Range, Mandi Gobindgarh, having all the Assessing Officer s of the range as its members. It was submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer in rejecting the books of account of the assessee and deleted the additions made by the Assessing Officer on account of unaccounted investment and unaccounted profits. 5. Aggrieved by the above order of the ld. CIT(A), the Revenue has come up in appeal before us raising the following grounds of appeal: 1. Whether on the facts circumstances of the case, the ld. Commissioner of Income tax (Appeals) was justified in deleting the addition made by the Assessing Officer on account of unaccounted investment and unaccounted profit out of unaccounted production even when the variation of consumption of electricity was more than 15%. More so, this action of the ld. CIT(A) is uncalled for being contrary to the observations of differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als in the case of M/s Modi Oil General Mill, Mandi Gobindgrh and Others in ITA No. 149/Chd/2016 and Others while observing that consequent to the report of the Committee constituted by the Principal, Commissioner of Income Tax, Patiala some internal guidelines regarding acceptability of variation upto 15% have been issued and further that no additions have been made on similar issue in subsequent years by the Assessing officer, has remanded the matter to the Assessing officer with a direction to decide the issue afresh in accordance with law in the light of the internal guidelines issued by the Principal, Commissioner of Income Tax, Patiala. 9. The Ld. counsel has stated that this matter need not to be restored in the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case with the assessee showing variation exceeding 15% on the lower side of the yearly average consumption. The ld. DR, therefore, pleaded that the decision of the I.T.A.T. relied upon the ld. Counsel of the assessee would not apply to the present case and that for this reason the books of accounts of the assessee had been correctly rejected by the Assessing Officer. The ld. DR, therefore, contended that the order of the Assessing Officer was to be upheld. 7. We have heard the contention of both the parties. Undisputedly the addition in the present case has been made on account of profits earned on unaccounted production and on account of investment made for the purpose of unaccounted production, for the reason that there was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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