Income Tax Officer, Hardoi V. Smt. Urmila Gupta (Prop.) Lovey Ankit Rice Mill, Hardoi

ITA 712/LKW/2014

• Counselvise Citation: 71223714 RSA 2014
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-12-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 09-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: C P SINGH
• Keywords: Unexplained investment

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 712 /LKW/201 4 ASSESSMENT YEAR:20 11 - 12 I.T. O., HARDOI , HARDOI . VS. SMT. URMILA GUPTA , NAYAGAON MUBARAKPUR , HARDOI . PAN:A KHPG1519K (APPELLANT) (RESPONDENT) APPELLANT BY SHRI C. P. SINGH , D.R. RESPONDENT BY NONE DATE OF HEARING 1 8 / 1 2/2014 DATE OF PRONOUNCEMENT 1 6 /01 /201 5 O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUE S APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A), BAREILLY DATED 02 / 0 6 /201 4 FOR ASSESSMENT YEAR 20 11 - 12 . 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) BAREILLY HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UNEXPLAINED INVESTMENT FOR PURCHASE OF EXTRA PADDY AMOUNTING TO RS. 13,76,039/ - . 2 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) BAREILLY HAS ERRED IN LAW AND ON F ACTS IN DELETING THE ADDITION RIGHTLY MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXTRA PROFIT ON SALE OF RICE A T RS. 1 1 , 04 , 27 0/ - . 3 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) BAREILLY HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION RIGHTLY MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXTRA PROFIT ON SALE OF RICE BRAN A T RS. 69 , 271 / - . 4 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) BAREILLY HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION RIGHTLY MADE BY THE ASSESSING OFFICER ON ACCOUNT OF EXTRA PROFIT ON SALE OF HUSK A T RS. 13 , 233 / - . 5 . THAT THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) MAY BE CANCELLED AND THE ORDER OF THE ASSESSING OFFICER MAY BE RESTORED. 6 . ANY OTHER GROUND MAY BE TAKEN AT THE TIME OF HEARING OF APPEAL. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF NOTICE AND HENCE, WE PROCEED TO DECIDE THIS APPEAL EX PARTE QUA THE ASSESSEE. LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER . 2 4 . WE HAVE CONSIDERED THE SUBM ISSIONS OF LEARNED DR OF THE REVENUE AND THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT ON PAGE NO. 2 OF THE ASSESSMENT ORDER, THE A.O. HAS REPRODUCED A MONTH WISE CHART OF ELECTRICITY CONSUMPTION IN UNITS, HULLING OF PADDY IN QUINTALS AND RATE OF CONSU MPTION OF ELECTRICITY PER QUINTAL N UNITS. AFTER THIS CHART, THE A.O. NOTED THAT THE RATE IS 3.07 IN NOVEMBER BUT 9.25 IN DECEMBER. IN MARCH, 2011 THE RATE IS 0.57UNITS PER QUINTAL. THE A.O. ALSO NOTED THAT THERE IS NO PRODUCTION DURING APRIL 2010 TO JULY 2010 BUT ELECTRICITY CONSUMPTION IS SHOWN AT 20475, 12894, 12120 AND 9648 UNITS IN THESE FOUR MONTHS. THE A.O. HAS ALSO NOTED THE COMPARATIVE RATE OF ELECTRICITY CONSUMPTION IN NOVEMBER 2010 TO MARCH 2011 AT 1.04 UNITS PER QUINTAL. HE HAS ALSO NOTED PLANT CAPACITY AND SANCTIONED LOAD ETC. AND CONFRONTED THE SAME TO THE ASSESSEE. THE REPLY WAS NOT SATISFACTORY. ALL THE ADDITIONS MADE BY THE A.O. ARE BASED ON THIS EXCESSIVE CONSUMPTION OF ELECTRICITY CLAIMED BY THE ASSESSEE. THERE IS NO CONCRETE FINDING OF LE ARNED CIT (A) ON THIS ASPECT. HE HAS MADE A SWEEPING COMMENT ON PAGE 7 OF HIS ORDER THAT INCREASE IN CONSUMPTION OF ELECTRICITY MAY BE DUE TO VARIOUS TECHNICAL REASONS WITHOUT MENTIONING EVEN A SINGLE SUCH REASON. THEREFORE, WE FEEL THAT THE ORDER OF LEARN ED CIT (A IS NOT SUSTAINABLE. THE ADDITIONS MADE BY THE A.O. ARE ON REASONABLE BASIS BECAUSE THERE IS ABNORMAL CONSUMPTION OF ELECTRICITY AND THE SAME COULD NOT BE EXPLAINED BY THE ASSESSEE . WE, THEREFORE, REVERSE THE ORDER OF LEARNED CIT (A) ON ALL ISSUES AND RESTORE THAT OF THE A.O. 5 . IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED . (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KU MAR YADAV) ( A. K. GARODIA ) JUDI CIAL MEMBER ACCOUNTANT MEMBER DATED: 1 6 /0 1 /201 5 . *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR