Appeal details
Counselvise Citation
[2017] 127 COUNSELVISE.COM (IT) 6904 (ITAT-CHANDIGARH)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 23 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
31-08-2017
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
Not Allotted
Assessment Year
2012-2013
Appeal Filed On
07-04-2017
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.613/CHD/2017 (ASSESSMENT YEAR : 2012-13) THE INCOME TAX OFFICER, VS. M/S GOKUL STEEL ROLLING MILLS, WARD-1, MANDI GOBINDGARH, VILL.KUMBH, AMLOH ROAD, HQ. SIRHIND. MANDI GOBINDGARH. PAN: AAAFJ8099E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH, DR RESPONDENT BY : SHRI RAJEEV DUTTA, CA DATE OF HEARING : 16.08.2017 DATE OF PRONOUNCEMENT : 31.08.2017 O R D E R PER ANNAPURNA GUPTA, A.M. : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER PASSED BY THE LD.CIT(APPEALS), PATIALA DATED 30.1.2017 RELATING TO ASSESSMENT YEAR 2012-13. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.52,24,668/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNACCOUNTED INVESTMENT IN UNACCOUNTED PRODUCTION AND RS.7,18,224/- MADE ON ACCOUNT OF UNACCOUNTED PROFIT IN UNACCOUNTED PRODUCTION. 2. IT IS PRAYED THAT THE ORDER OF LD. CIT (A) BE SE T ASIDE AND THAT OF THE AO RESTORED. 3. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD AND FINALLY DISPOSED OF. 3. THE ONLY ISSUE IN THE PRESENT APPEAL PERTAINS TO REJECTION OF BOOKS OF ACCOUNT OF THE ASSESSEE ON AC COUNT OF 2 DISPARATE CONSUMPTION OF ELECTRICITY VIS--VIS PROD UCTION OF FINISHED GOODS AND FURTHER MAKING ADDITION OF GROSS PROFIT AND UNACCOUNTED INVESTMENT BY WORKING OUT THE UNACCOUNTED PRODUCTION OF THE ASSESSEE. 4. THE FACTS RELEVANT TO THE CASE ARE THAT THE ASSE SSEE FIRM IS A ROLLING MILL WHEREIN IRON & STEEL PRODUCT S VIZ. FLATS & BARS OF VARIOUS SIZES ARE MANUFACTURED. THE A.O. HAD OBSERVED THAT IN THIS CASE, ELECTRICITY CONSUMED WA S DIRECTLY RELATED TO PRODUCTION OF FINISHED GOODS. I N ORDER TO CO-RELATE THE CONSUMPTION OF ELECTRICITY VIS-A-VIS THE PRODUCTION SHOWN, THE A.O. GATHERED INFORMATION REG ARDING CONSUMPTION OF ELECTRICITY FROM THE ELECTRICITY BOA RD. THE A.O. ANALYZED THE DATA AND REPRODUCED THE SAME IN F IVE DIFFERENT ANNEXURES DULY ENCLOSED WITH THE ASSESSME NT ORDER. ANNEXURE-A SHOWED QUANTITY OF FINISHED GOODS PRODUCED ON A GIVEN DAY IN METRIC TONS, ELECTRICITY UNITS CONSUMED ON THAT DAY AND ALSO AMOUNT OF ELECTRICITY UNITS CONSUMED PER METRIC TON OF FINISHED GOODS PRODUCED ON THAT DAY. IT WAS OBSERVED THAT THE ELECTRICITY CONSUMPTI ON PMT. OF FINISHED GOODS VARIED FROM 0.05 UNITS TO 1.13 UN ITS WHILE THE AVERAGE FOR THE ENTIRE YEAR IS 426.11 UNITS. TH E ANNEXURE-B SHOWED THE DAYS ON WHICH ELECTRICITY CON SUMED PER METRIC TON OF FINISHED GOODS WAS LOW BUT THE PR ODUCTION OF FINISHED GOODS WAS VERY HIGH. ANNEXURE-C SHOWED THE DAYS ON WHICH THE ELECTRICITY UNITS CONSUMED PER ME TRIC TON OF FINISHED GOODS WAS VERY HIGH WHEREAS THE PRODUCT ION OF FINISHED GOODS IS VERY LOW. FURTHER, THERE WERE CER TAIN DAYS 3 WHEN THERE WAS HIGH CONSUMPTION OF ELECTRICITY BUT NO PRODUCTION OF FINISHED GOODS. THE DETAILS WERE REPR ODUCED IN THE ASSESSMENT ORDER. IT WAS ALSO OBSERVED THAT CLOSE TO THESE DAYS ELECTRICITY CONSUMPTION WAS ALMOST SAME WITH HIGH PRODUCTION OF FINISHED GOODS. ANNEXURE-D SHOWE D THE DETAILS OF CLOSED DAYS ON WHICH THERE WAS LOW CONSU MPTION OF ELECTRICITY AND NO PRODUCTION OF FINISHED GOODS. THE ANNEXURE-E SHOWED THE ELECTRICITY UNITS CONSUMED PE R METRIC TON OF FINISHED GOODS PRODUCED OVER 30 DAYS PERIOD. WHEN CONFRONTED ON THIS ISSUE, THE ASSESSEE SUBMITT ED THAT THE CONSUMPTION OF ELECTRICITY DEPENDS ON VARIOUS F ACTORS NAMELY DELAY OR TIME LAG IN THE RECORDING OF PRODUC TION IN THE BOOKS, DIFFERENCE IN TYPE AND QUALITY OF RAW MA TERIAL USED, POWER CUTS, GRID FAILURES, VOLTAGE FLUCTUATIO NS, MILL CONDITION, MOTOR, BREAK DOWN OF MACHINERY, DIFFEREN T LOAD TAKEN BY OTHER MACHINES NOT RELATED WITH PRODUCTION , AND LABOUR EFFICIENCY ETC. THE DETAILED REPLY OF ASSESS EE IS REPRODUCED IN THE ASSESSMENT ORDER. NOT SATISFIED W ITH THE CORRECTNESS OF THE BOOKS OF ACCOUNT OF THE ASSESSEE FOR THE REASONS DETAILED IN THE ASSESSMENT ORDER, THE ASSES SING OFFICER REJECTED THE SAME. WHILE DOING SO, HE RELIE D ON THE CASES OF MELTON INDIA VS. COMMISSIONER OF TRADE OF TAX (UP) APPEAL NO. (CIVIL) 373 OF 2007 (SC), SH. GANPATI EM BROIDERY PVT. LTD. VS. CIT 16 DTR (P & H) AND KANCHWALA GEMS VS. JCIT 288 ITR 10 (SC). THE A.O., THEREAFTER, ADOPTED THE VALUE OF ELECTRICITY CONSUMED PMT. ON THE BASIS OF MINIMUM AVERAGE VALUE FOR A PERIOD OF 30 DAYS ASSUMING THAT WITHIN A PERIOD OF 30 DAYS VARIOUS TYPES OF RAW MATERIALS WOULD 4 HAVE BEEN USED AND OTHER FACTORS CONTRIBUTING TO TH E VARIATION IN CONSUMPTION OF ELECTRICITY PMT OF FINI SHED GOODS WOULD HAVE BEEN TAKEN CARE OF. THE A.O. ACCORDINGLY TOOK THE LOWEST AVERAGE VALUE WHICH IS 337.26 UNITS PMT. ON THIS BASIS, THE A.O. ESTIMATED THE UNACCOUNTED PRODUCTIO N. THE A.O. GAVE SOME RELIEF FOR THE ELECTRICITY UNITS NOT RELATED TO PRODUCTION DUE TO CLOSED DAYS AND, THEREAFTER, COMP UTED THE ACTUAL ELECTRICITY CONSUMED FOR 12 MONTHS ON TH E BASIS OF 337.26 UNITS PMT. OF PRODUCTION AS PER CHART REP RODUCED IN THE ASSESSMENT ORDER. THE A.O. COMPUTED THE QUAN TUM OF ACTUAL FINISHED GOODS PRODUCED AND, THEREAFTER, ASC ERTAINED THE UNACCOUNTED PRODUCTION FOR EACH MONTH AFTER DED UCTING THE FINISHED GOODS PRODUCED DURING THE MONTHS SHOWN IN THE BOOKS OF ACCOUNTS. THEREAFTER, ON THE BASIS OF AVERAGE SALES RATE TOTAL UNACCOUNTED PRODUCTION WAS ESTIMAT ED IN MONETARY TERMS AND THEN ADOPTING THE GROSS PROFIT R ATE SHOWN BY THE ASSESSEE, THE UNACCOUNTED PROFIT OF RS7,18,224.95/- OUT OF THE UNACCOUNTED PRODUCTION W AS WORKED OUT AND ADDED TO THE INCOME OF THE ASSESSEE. SECONDLY, THE PEAK UNACCOUNTED PRODUCTION FOR THE R ELEVANT MONTH WAS DETERMINED AND BY MULTIPLYING WITH THE AV ERAGE SALES RATE OF FINISHED GOODS, THE UNACCOUNTED INVES TMENT WAS WORKED OUT AT RS.52,24,667.63/- AND ADDED TO TH E INCOME OF THE ASSESSEE. 5. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER THE ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(APPEALS) . BEFORE THE LD.CIT(APPEALS) THE ASSESSEE CONTENDED THAT SIN CE IT IS 5 ALSO INDULGING IN PRODUCTION OF PIPES ALONGWITH PRO DUCTION OF FLATS AND BARS, THE DATA RELATING TO CONSUMPTIO N OF ELECTRICITY NEEDS TO BE REWORKED AFTER EXCLUDING HE PRODUCTION OF PIPES UNDERTAKEN BY THE ASSESSEE AND THAT THE REWORKED DATA WOULD REFLECT THAT THE VARIATION IN CONSUMPTION OF ELECTRICITY IN THE CASE OF FLATS WAS WITHIN 15% RANGE WHICH HAS BEEN ACCEPTED BY THE ASSESSING OFFICER IN SUBSEQUENT YEARS. THE SUBMISSIONS OF TH E ASSESSEE WERE FORWARDED TO THE ASSESSING OFFICER WH O ACCEPTED THE CONTENTION OF THE ASSESSEE STATING THA T THE INITIAL DATA HAS BEEN COMPLIED BY INCLUDING THE PRO DUCTION OF PIPES ALSO AND WHICH NEEDED TO BE EXCLUDED FOR W ORKING OUT THE CORRECT CONSUMPTION OF ELECTRICITY AND THAT REVISED DATA SHOWED THE ELECTRICITY CONSUMPTION WITHIN 15% OF THE AVERAGE CONSUMPTION. THE LD.CIT(APPEALS) AFTER CONS IDERING THE SUBMISSIONS OF BOTH THE ASSESSEE AND THE ASSESS ING OFFICER IN HIS COUNTER COMMENTS SET ASIDE THE ACTIO N OF THE ASSESSING OFFICER OF REJECTING BOOKS OF ACCOUNT OF THE ASSESSEE AND DELETED THE ADDITION MADE AS A CONSEQU ENCE ON ACCOUNT OF UNACCOUNTED PRODUCTION. THE LD.CIT(APPEALS) STATED THAT A DETAILED STUDY HAD BE EN CONDUCTED BY A COMMITTEE CONSTITUTED BY THE PRINCIP AL CIT, PATIALA WITH A VIEW TO EXAMINE THE VARIATION IN THE CONSUMPTION OF ELECTRICITY VIS--VIS PRODUCTION OF FINISHED GOODS IN THE ROLLING MILLS AND INDUCTION FURNACES O F THE AREA. THE COMMITTEE WAS A BROAD BASED MULTIMEMBER BODY AND INCLUDE THE ADDL.CIT, RANGE, MANDI GOBINDGARH A S ITS HEAD AND ALL THE ASSESSING OFFICERS OF THE RANGE AS ITS 6 MEMBERS. THE LD.CIT(APPEALS) OBSERVED THAT THE SAI D COMMITTEE WAS ASSISTED BY EXPERTS FROM THE NATIONAL INSTITUTE OF SECONDARY STEEL TECHNOLOGY AND INDUSTR Y REPRESENTATIVES. THE LD.CIT(APPEALS) FURTHER HELD THAT THE REPORT OF THIS COMMITTEE HAD DECIDED TO GIVEN BENEF IT OF 15% VARIATION IN CONSUMPTION OF ELECTRICITY PER MT OF F INISHED GOODS PRODUCED FROM THE AVERAGE WORKED OUT ON YEARL Y BASIS. THE LD.CIT(APPEALS) ALSO FOUND THAT THE ASS ESSING OFFICERS HAD BEEN FOLLOWING THIS NORM FOR MAKING ASSESSMENTS IN SIMILAR CASES. THE LD.CIT(APPEALS), THEREFORE, HELD THAT IN VIEW OF THE RECOMMENDATIONS OF THE AFORESAID COMMITTEE AND IN VIEW OF THE FINDINGS OF THE ASSESSING OFFICER THAT IN THE CASE OF THE ASSESSEE THE VARIATION IN ELECTRICITY CONSUMPTION WAS WITHIN 15% RANGE, THERE WAS NO REASON TO REJECT THE BOOKS OF ACCOUNT OF THE ASSESSEE. THE RELEVANT FINDINGS OF THE LD.CIT(APPE ALS) ARE AS UNDER: ON A CAREFUL CONSIDERATION OF THE TOTALITY OF FACTS AND CIRCUMSTANCES ON RECORD, IM OF THE VIEW THAT THE PL EA OF THE APPELLANT COMPANY MERITS CONSIDERATION. IT IS A MATTER OF FACT THAT A DETAILED STUDY HAS BEEN CONDUCTED BY A COMMIT TEE, CONSTITUTED BY THE PRINCIPAL CIOT PATIALA, WITH A VIE W TO EXAMINE THE VARIATION IN THE CONSUMPTION OF ELECTRICITY VIS-A- VIS THE PRODUCTION OR FINISHED GOODS IN ME ROLLING M ILL AND INDUCTION FURNACES OF THE AREA. THE COMMITTEE, A BROA D-BASED MULTIMEMBER BODY, HAD THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE, MANDI GOBINDGARH AS ITS HEAD AND ALL THE AO'S OF THE RANGE AS ITS MEMBERS. IT WAS ASSISTED BY THE EXP ERTS FROM THE NATIONAL INSTITUTE OF THE SECONDARY STEEL TECHNOL OGY (NISST) AND THE INDUSTRY REPRESENTATIVES. I HAVE ACC ESSED ITS REPORT FROM THE JCIT, RANGE, MANDI GOBINDGARH. IT'S RELEV ANT EXCERPT READS AS UNDER: 'THEREAFTER, TO ASCERTAIN THE AMOUNT OF VARIATION I N CONSUMPTION OF ELECTRICITY PER METRIC TON OF FINISHED GOODS PRODUCED OF SIMILAR SIZES AND ODD SIZES, THE A OS CARRIED OUT ON THE SPOT VERIFICATION BY RUNNING SOM E OF THE ROLLING MILLS ON A FIX PERIOD OF TIME AND NOTIC ED 7 QUITE APPRECIABLE VARIATION IN THE CONSUMPTION OF ELECTRICITY PER METRIC TON OF FINISHED GOODS IN SIMILA R SIZES AS WELL AS ODD SIZES. THE TECHNICAL EXPERTS FROM NATIONAL INSTITUTE OF SECONDARY STEEL TECHNOLOGY (NISST ), MANDI GOBINDGARH ALSO OPINED THAT GIVEN THE NATURE OF TECHNOLOGY, RAW MATERIALS AND FINISHED GOODS, SUBSTANTIAL VARIATION IN THE NUMBER OF ELECTRICITY UNITS FOR PRODUCTION OF ONE METRIC TON OF FINISHED GOODS INTE R DAY BASIS, ARE BOUND TO BE THERE.' BASED ON ITS FINDING OF FACTS, IT HAS DECIDED 'TO GIVE BENEFIT OF 15% VARIATION IN CONSUMPTION OF ELECTRIC ITY PER METRIC TON OF FINISHED GOODS PRODUCED FROM THE AVERA GE WORKED OUT ON YEARLY BASIS'. MEANING THEREBY, THAT 1 5% VARIATION IN THE NUMBER OF ELECTRICITY UNITS CONSUMED PE R METRIC TON OF FINISHED GOODS AS COMPARED TO THE AVE RAGE CONSUMPTION OF ELECTRICITY UNITS PER METRIC TON OF F INISHED GOODS IS THE INDUSTRIAL NORM WARRANTING NO ADVERSE COGNIZANCE. HENCE, BECAUSE OF THAT REASON ALONE, BOOK S OF ACCOUNT SHOULD NOT BE REJECTED. INDEED, AS STATED ABOV E, PURSUANT TO THE REPORT OF THE COMMITTEE, THE AO'S H AVE FOLLOWED THIS NORM WHILE MAKING ASSESSMENTS IN SIMI LAR CASES AND IN SIMILAR SET OF CIRCUMSTANCES AND ACCEPT ED THE BOOK RESULTS SHOWN BY THE ASSESSEES. IN VIEW OF THI S AND ALSO PLACING RELIANCE ON THE DECISION OF THE HON'BL E PUNJAB AND HARYANA HIGH COURT IN THE CASE OF REITA BISCUIT S (SUPRA), I AM OF THE VIEW THAT THE BOOK RESULTS SHOWN BY THE A PPELLANT COMPANY FOR THE YEAR UNDER CONSIDERATION NEED TO BE ACCEPTED AS WELL. CONSEQUENTLY, THE ACTION OF THE AO IN RESPECT OF REJECTION OF BOOKS OF ACCOUNT BY RESORTING TO SEC. 1 45(3) OF THE I.T. ACT IS NOT UPHELD. THE AO IS DIRECTED TO AC CEPT THE BOOK RESULTS SHOWN BY THE APPELLANT. THE TWIN ADDITIONS MADE BY THE AO ON ACCOUNT OF UNACCOUNTED PROFITS AND UNACCOUNTED INVESTMENT ARE ALSO DELETED AS A CONSEQUENCE. 6. AGGRIEVED BY THE SAME THE REVENUE HAS FILED THE PRESENT APPEAL BEFORE US. DURING THE COURSE OF HEA RING THE LD. DR RELIED UPON THE ORDER OF THE ASSESSING OFFIC ER AND STATED THAT ON ACCOUNT OF CLEAR-CUT VARIATION IN TH E CONSUMPTION PATTERN OF ELECTRICITY VIS--VIS PRODUC TION, THE BOOKS OF ACCOUNT HAD BEEN RIGHTLY REJECTED AND UNAC COUNTED PRODUCTION WORKED OUT AND MADE ADDITION ALONGWITH UNACCOUNTED INVESTMENT. 7. THE LD. COUNSEL FOR ASSESSEE, ON THE OTHER HAND, DREW OUR ATTENTION TO THE FACT THAT FOLLOWING THE 8 RECOMMENDATIONS OF THE COMMITTEE CONSTITUTED BY THE PRINCIPAL CIT, PATIALA THE ITAT CHANDIGARH BENCH IN A NUMBER OF CASES ACCEPTED BOOK RESULTS OF THE ASSESS EE AND DELETED THE ADDITION MADE ON ACCOUNT OF UNACCOUNTED PRODUCTION AND INVESTMENT WHERE THERE WAS CLEAR-CUT FINDING THAT THE CONSUMPTION OF ELECTRICITY FELL WI THIN THE RECOMMENDED 15% RANGE. THE LD. COUNSEL FOR ASSESSE E SUBSTANTIALLY DREW OUR ATTENTION TO THE FINDINGS OF THE OF THE ITAT CHANDIGARH BENCH IN THE CASE OF ITO, WARD- 1 VS. M/S DHIMAN STEEL ROLLING MILLS REPORTED IN ITA NO.392/CHD/2017 DATED 28.4.2017. 8. WE HAVE HEARD THE CONTENTIONS OF BOTH THE PARTIE S. WE FIND NO INFIRMITY IN THE ORDER OF THE LD.CIT(APPEAL S). UNDOUBTEDLY BOOKS IN THE PRESENT CASE HAVE BEEN REJ ECTED ON ACCOUNT OF DISPARATE CONSUMPTION PATTERN OF ELEC TRICITY VIS--VIS PRODUCTION OF FINISHED GOODS. IT IS ALSO AN ACCEPTED FACT ON RECORD THAT THE PRINCIPAL CIT, PAT IALA HAD CONSTITUTED A COMMITTEE TO RECOMMEND THE ACCEPTABLE VARIATION IN THE CONSUMPTION PATTERN OF ELECTRICITY WITH RESPECT TO THE STEEL INDUSTRIES WHICH HAD RECOMMEND ED AN ACCEPTABLE VARIATION OF 15%. IT IS ALSO NOT DISPUTE D AND IS IN FACT AN ADMITTED FACT THAT THE VARIATION IN ELEC TRICITY CONSUMPTION OF THE ASSESSEE WAS WELL WITHIN 15% RECOMMENDED RANGE. FURTHER WE FIND THAT ON IDENTIC AL SET OF FACTS THE ITAT CHANDIGARH BENCH IN THE CASE OF M /S DHIMAN STEEL ROLLING MILLS (SUPRA) HAS HELD THAT TH ERE WAS NO REASON TO REJECT THE BOOKS OF ACCOUNT OF THE ASS ESSEE IN 9 SUCH CIRCUMSTANCES AND HAD, THEREFORE, DELETED THE ADDITION MADE ON ACCOUNT OF UNACCOUNTED PRODUCTION AND UNACCOUNTED INVESTMENT. THE RELEVANT FINDINGS OF T HE ITAT CHANDIGARH BENCH IN THE CASE OF M/S DHIMAN STEEL RO LLING MILLS (SUPRA) ARE AS UNDER: 8. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS BROUGHT TO OUR KNOWLEDGE THAT ON IDENTICAL ISSUES, WHEREIN THE ADDITIONS MADE BY THE ASSESSING OFFICER ON ESTIMATION BASIS AS DISCUSSED ABOVE WERE UPHELD BY THE CONCERNED CIT(A), THE ASSESSEES PREFERRED APPEALS BEFORE THIS TRIBUNAL AND THIS TRIBUNAL VIDE ITS COMMON ORDER DATED 14.2.2017, PASSED IN A BUNCH OF ABOUT 85 APPEALS 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 UPT O 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 T HE 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 APPEALS AS T HE LD. CIT(A) WHILE DECIDING THE ABOVE APPEALS IN FAVO UR OF THE ASSESSEE HAS ALREADY FOLLOWED THE INTERNAL GUIDELINES OF THE COMMITTEE CONSTITUTED BY THE PRINCIPAL COMMISSIONER OF INCOME TAX, PATIALA. THAT THE COMMITTEE SO CONSTITUTED WAS A BROAD BASED MULTI MEMBER BODY HAVING ADDITIONAL COMMISSIONER OF INCOME TAX, MANDI GOBINDGARH AS ITS HEAD AND ALL THE ASSESSING OFFICERS OF THE RANGE AS ITS MEMBERS. IT WAS ALSO ASSISTED BY THE EXPERTS OF THE NATIONAL INSTITUTE OF THE SECONDARY STEEL TECHNOLOGY (NISST) AND THE INDUSTRY REPRESENTATIVES. THE LD. CIT(A) HA S ACCEPTED THE VARIATION OF 15% IN CONSUMPTION OF ELECTRICITY PER METRIC TON OF FINISHED GOODS AS PER THE REPORT OF THE COMMITTEE. THE SAME HAS ALREADY BEEN FOLLOWED BY THE ASSESSING OFFICER IN SUBSEQUENT ASSESSMENT YEAR. CONSIDERING THE ABOVE FACTS AND CIRCUMSTANCES, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) WHILE DIRECTING THE ASSESSING OFFICER TO ACCEPT THE BOOKS RESULTS SHOWN BY THE ASSESSEE AND TO DELETE THE ADDITIONS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNACCOUNTED PROFITS / 10 UNACCOUNTED INVESTMENT MADE ON ESTIMATION BASIS AS DISCUSSED ABOVE. THE ORDER OF THE CIT(A) IS, THEREFORE, UPHELD. 10. SINCE THE FACTS AND ISSUE INVOLVED IN ALL THE OTHER CAPTIONED APPEALS ARE IDENTICAL, HENCE, IN VI EW OF OUR FINDINGS GIVEN ABOVE, WE DO NOT FIND ANY MER IT IN ALL THE APPEALS OF THE REVENUE AND THE SAME ARE ACCORDINGLY DISMISSED. 9. SINCE THE FACTS IN THE PRESENT CASE ARE IDENTIC AL TO THAT IN THE CASE OF M/S DHIMAN STEEL ROLLING MILLS (SUPR A) THE DECISION RENDERED THEREIN SQUARELY APPLY IN THE PRE SENT CASE FOLLOWING WHICH WE UPHOLD THE ORDER OF THE LD.CIT(APPEALS) ACCEPTING THE BOOK RESULTS OF THE A SSESSEE AND DELETING THE ADDITION MADE ON ACCOUNT OF PROFIT ON UNACCOUNTED PRODUCTION OF RS.7,18,224/- AND UNACCOU NTED INVESTMENT OF RS.52,24,668/-. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS, TH EREFORE, DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 31 ST AUGUST, 2017 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH
