ITO, Sirhind V. M/s Garg Malleables India Pvt. Ltd., Mandi Gobindgarh

ITA 616/CHANDI/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6902 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 23 day(s)
• 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
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Keywords: Unexplained investment
• Section: 154

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.616/CHD/2017 (ASSESSMENT YEAR : 2012-13) THE INCOME TAX OFFICER, VS. M/S GARG MALLEABLES I NDIA PVT. LTD., WARD-1, MANDI GOBINDGARH, MOTIAI KHAN, HQ. SIRHIND. MANDI GOBINDGARH. PAN: AACCG8898D (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MANJIT SINGH, DR RESPONDENT BY : NONE 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 121.2017 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.22,12,795/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNACCOUNTED INVESTMENT IN UNACCOUNTED PRODUCTION AND RS.11,71,166/- 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 OF THE CASE ARE THAT THE ASSESSEE FIRM WAS RUNNING A FURNACE UNIT AND ENGAGED IN THE BUSINESS OF MANUFACTURING OF STEEL INGOTS AND TRADING IN IRON & STEEL. THE A.O. OBSERVED THAT IN THIS CASE, ELECTRI CITY CONSUMED WAS DIRECTLY RELATED TO PRODUCTION OF FINI SHED GOODS. IN ORDER TO CO-RELATE THE CONSUMPTION OF ELE CTRICITY VIS-A-VIS THE PRODUCTION SHOWN, THE A.O. GATHERED INFORMATION REGARDING CONSUMPTION OF ELECTRICITY FR OM THE ELECTRICITY BOARD. THE A.O. ANALYZED THE DATA AND REPRODUCED THE SAME IN FIVE DIFFERENT ANNEXURES DUL Y ENCLOSED WITH THE ASSESSMENT ORDER. ANNEXURE-A SHOW ED QUANTITY OF FINISHED GOODS PRODUCED ON A GIVEN DAY IN METRIC TONS, ELECTRIC UNITS CONSUMED ON THAT DAY AN D ALSO AMOUNT OF ELECTRICITY UNITS CONSUMED PER METRIC TON OF FINISHED GOODS PRODUCED ON THAT DAY. IT WAS OBSERVE D THAT THE ELECTRICITY CONSUMPTION PMT. OF FINISHED GOODS VARIED FROM 151.08 UNITS TO 2516.98 UNITS WHILE THE AVERAG E FOR THE ENTIRE YEAR WAS 977.92 UNITS. THE ANNEXURE-B SH OWED THE DAYS ON WHICH ELECTRICITY CONSUMED PER METRIC T ON OF FINISHED GOODS WAS LOW BUT THE PRODUCTION OF FINISH ED GOODS WAS VERY HIGH. ANNEXURE-C SHOWED THE DAYS ON WHICH THE ELECTRICITY UNITS CONSUMED PER METRIC TON OF FINISH ED GOODS WAS VERY HIGH WHEREAS THE PRODUCTION OF FINISHED GO ODS WAS 3 VERY LOW. FURTHER, THERE WERE CERTAIN DAYS WHEN THE RE WAS HIGH CONSUMPTION OF ELECTRICITY BUT LOW PRODUCTION OF FINISHED GOODS. THE DETAILS WERE REPRODUCED IN THE ASSESSMENT ORDER. IT WAS ALSO OBSERVED THAT CLOSE T O THESE DAYS ELECTRICITY CONSUMPTION WAS ALMOST SAME WITH H IGH PRODUCTION OF FINISHED GOODS. ANNEXURE-D SHOWED 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 ELECTRIC UNITS CONSUMED PER M ETRIC TON OF FINISHED GOODS PRODUCED OVER 10 DAYS PERIOD. 5. WHEN CONFRONTED ON THIS ISSUE, THE ASSESSEE SUBM ITTED THAT THE CONSUMPTION OF ELECTRICITY DEPENDED ON VAR IOUS FACTORS NAMELY QUALITY OF MATERIAL, HOLDING PERIOD OF MOLTEN METAL FOR REMOVING THE SLAG AND DUE TO MIS-MATCH IN RECORDING CYCLE, METAL LEAKAGE, WHICH CAN BE FULL O R PARTIAL, DEFECTIVE PRODUCTIONS WHICH HAD TO BE RE-MELTED, LA BOUR DEFICIENCY, BREAK DOWN OF MACHINERY, VOLTAGE FACTOR , AND POWER RESTRICTION ON SOME DAYS. THE DETAILED REPLY OF THE ASSESSEE IS REPRODUCED IN THE ASSESSMENT ORDER. NOT SATISFIED WITH THE CORRECTNESS OF THE BOOKS OF ACCO UNT OF THE ASSESSEE FOR THE REASONS DETAILED IN THE ASSESS MENT ORDER, THE ASSESSING OFFICER REJECTED THE SAME. WHI LE DOING SO, HE RELIED ON THE CASES OF MELTON INDIA VS. COMM ISSIONER OF TRADE OF TAX (UP) APPEAL NO. (CIVIL) 373 OF 2007 (SC), SH. GANPATI EMBROIDERY 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 CONSUM ED PMT. 4 ON THE BASIS OF MINIMUM AVERAGE VALUE FOR A PERIOD OF 10 DAYS ASSUMING THAT WITHIN A PERIOD OF 10 DAYS VARIO US TYPES OF RAW MATERIALS WOULD HAVE BEEN USED AND OTH ER FACTORS CONTRIBUTING TO THE VARIATION IN CONSUMPTIO N OF ELECTRICITY PMT OF FINISHED GOODS WOULD HAVE BEEN T AKEN CARE OF. THE A.O. ACCORDINGLY TOOK THE LOWEST AVERA GE VALUE WHICH WAS 866.58 UNITS PMT. PERTAINING TO THE PERIO D 1.10.2011 TO 10.10.2011. ON THIS BASIS, THE A.O. ES TIMATED THE UNACCOUNTED PRODUCTION. THE A.O. GAVE SOME RELI EF FOR THE ELECTRICITY UNITS NOT RELATED TO PRODUCTION DUE TO CLOSED DAYS AND, THEREAFTER, COMPUTED THE ACTUAL ELECTRICI TY CONSUMED FOR 12 MONTHS ON THE BASIS OF 866.58 UNITS PMT. OF PRODUCTION AS PER CHART REPRODUCED IN THE ASSESS MENT ORDER. THE A.O. COMPUTED THE QUANTUM OF ACTUAL FINI SHED GOODS PRODUCED AND, THEREAFTER, ASCERTAINED THE UNACCOUNTED PRODUCTION FOR EACH MONTH AFTER DEDUCTI NG THE FINISHED GOODS PRODUCED DURING THE MONTHS SHOWN IN THE BOOKS OF ACCOUNTS. THEREAFTER, ON THE BASIS OF AVER AGE PURCHASE RATE, TOTAL UNACCOUNTED PRODUCTION WAS EST IMATED IN MONETARY TERMS AND THEN ADOPTING THE GROSS PROFI T RATE SHOWN BY THE APPELLANT, THE UNACCOUNTED PROFIT OUT OF THE UNACCOUNTED PRODUCTION WAS WORKED OUT AT RS.14,64,094.09/- ON THE BASIS OF AVERAGE SALE RATE . SECONDLY, THE PEAK UNACCOUNTED PRODUCTION FOR THE RELEVANT MONTH WAS DETERMINED AND BY MULTIPLYING WI TH THE AVERAGE PURCHASE RATE OF FINISHED GOODS, THE UNACCO UNTED INVESTMENT WAS WORKED OUT AT RS.60,06,899.76/-.BOTH THE ABOVE WERE ADDED TO THE INCOME OF THE ASSESSEE BUT WERE 5 LATER REDUCED TO RS,11,71,166/- AND RS.22,12,795.80 /- RESPECTIVELY BY THE ASSESSING OFFICER VIDE RECTIFIC ATION ORDER U/S 154 DATED 8.5.2015. 6. 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 THE VARIATION ON YEARLY AVERAGE CONSUMPTION OF ELECTRIC ITY WAS WITHIN 15% RANGE WHICH HAD BEEN ACCEPTED BY THE ASS ESSING OFFICER IN SUBSEQUENT YEARS. THE SUBMISSIONS OF TH E ASSESSEE WERE FORWARDED TO THE ASSESSING OFFICER WH O ACCEPTED THE CONTENTION OF THE ASSESSEE. THE LD.CIT(APPEALS) AFTER CONSIDERING THE SUBMISSIONS O F BOTH THE ASSESSEE AND THE ASSESSING OFFICER IN HIS COUNT ER COMMENTS SET ASIDE THE ACTION OF THE ASSESSING OFFI CER OF REJECTING BOOKS OF ACCOUNT OF THE ASSESSEE AND DELE TED THE ADDITIONS MADE. THE LD.CIT(APPEALS) STATED THAT A DETAILED STUDY HAD BEEN CONDUCTED BY A COMMITTEE CONSTITUTED BY THE PRINCIPAL CIT, PATIALA WITH A VIEW TO EXAMINE T HE VARIATION IN THE CONSUMPTION OF ELECTRICITY VIS--V IS PRODUCTION OF FINISHED GOODS IN THE ROLLING MILLS A ND INDUCTION FURNACES OF THE AREA. THE COMMITTEE WAS A BROAD BASED MULTIMEMBER BODY AND INCLUDE THE ADDL.CIT, RA NGE, MANDI GOBINDGARH AS ITS HEAD AND ALL THE ASSESSING OFFICERS OF THE RANGE AS ITS MEMBERS. THE LD.CIT(APPEALS) O BSERVED THAT THE SAID COMMITTEE WAS ASSISTED BY EXPERTS FRO M THE NATIONAL INSTITUTE OF SECONDARY STEEL TECHNOLOGY AN D INDUSTRY REPRESENTATIVES. THE LD.CIT(APPEALS) FURT HER HELD 6 THAT THE REPORT OF THIS COMMITTEE HAD DECIDED TO GI VEN BENEFIT OF 15% VARIATION IN CONSUMPTION OF ELECTRIC ITY PER MT OF FINISHED GOODS PRODUCED FROM THE AVERAGE WORK ED OUT ON YEARLY BASIS. THE LD.CIT(APPEALS) ALSO FOUND TH AT THE ASSESSING 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 CIT PATIALA, WITH A VIEW TO EXAMINE THE VARIATION IN THE CONSUMPTION OF ELECTRICITY VIS-A- VIS THE PRODUCTION OR FINISHED GOODS IN THE ROLLING MILL AND INDUCTION FURNACES OF THE AREA. THE COMMITTEE, A BROA D-BASED MULTIMEMBER BODY, HAD THE ADDITIONAL COMMISSIONER OF INCOM E 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 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 7 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 ELECTR ICITY 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. 7. 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 ADDI TIONS MADE ON ACCOUNT OF GP ON UNACCOUNTED PRODUCTION AND ON ACCOUNT OF UNACCOUNTED INVESTMENT. 8. THE LD. COUNSEL FOR ASSESSEE, ON THE OTHER HAND, DREW OUR ATTENTION TO THE FACT THAT FOLLOWING THE RECOMMENDATIONS OF THE COMMITTEE CONSTITUTED BY THE PRINCIPAL CIT, PATIALA THE ITAT CHANDIGARH BENCH IN A NUMBER OF CASES HAD ACCEPTED THE BOOK RESULTS OF TH E 8 ASSESSEE AND DELETED THE ADDITION MADE ON ACCOUNT O F UNACCOUNTED PRODUCTION AND INVESTMENT WHERE THERE W AS CLEAR-CUT FINDING THAT THE VARIATION IN CONSUMPTION OF ELECTRICITY FELL WITHIN THE RECOMMENDED 15% RANGE. THE LD. COUNSEL FOR ASSESSEE DREW OUR ATTENTION TO THE FIND INGS OF THE TRIBUNAL IN THE CASE OF M/S DHIMAN STEEL ROLLIN G MILLS REPORTED IN ITA NO.392/CHD/2017 DATED 28.4.2017. 9. 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 AND WHICH HAD RECOM MENDED AN ACCEPTABLE VARIATION OF 15% FROM THE AVERAGE. I T IS ALSO NOT DISPUTED AND IS IN FACT AN ADMITTED FACT THAT T HE VARIATION IN ELECTRICITY CONSUMPTION OF THE ASSESSE E WAS WELL WITHIN 15% RECOMMENDED RANGE. FURTHER WE FIND THAT ON IDENTICAL SET OF FACTS THE ITAT CHANDIGARH BENCH IN THE CASE OF M/S DHIMAN STEEL ROLLING MILLS (SUPRA) HAS HELD THAT THERE WAS NO REASON TO REJECT THE BOOKS OF ACC OUNT OF THE ASSESSEE IN SUCH CIRCUMSTANCES AND HAD, THEREFO RE,, DELETED THE ADDITION MADE ON ACCOUNT OF UNACCOUNTED PRODUCTION AND UNACCOUNTED INVESTMENT. THE RELEVAN T 9 FINDINGS OF THE ITAT CHANDIGARH BENCH IN THE CASE O F M/S DHIMAN STEEL ROLLING 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 AN D 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 / 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 10 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. 10. SINCE THE FACTS IN THE PRESENT CASE ARE IDENTI CAL TO THAT IN THE CASE OF M/S DHIMAN STEEL ROLLING MILLS (SUPR A) THE DECISION RENDERED THEREIN WOULD SQUARELY APPLY IN T HE PRESENT CASE, FOLLOWING WHICH WE UPHOLD THE ORDER O F 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.11,71,116/- AND UNACCOUNTED INVESTMENT OF RS.22,12,795/-. 11. 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