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"23. I have carefully considered the observations of the A O and the arguments of the counsel for the appellant. The turnover of the appellant during the previous year was R.8.89 crores and the fuel expenses were Rs.8,23,723/-.

This year, the turnover has decreased substantially to 2.26 cores whereas the fuel expenses have gone upto Rs.16,53,931/-. In fact, the fuel expenses have increased eight times with respect to turnover. The appellant has not furnished any plausible explanation with supporting evidence for phenomenal increase in the fuel expenses before the A O nor has furnished any supporting evidence by giving calculation such as production in quantitative term and the quantity of steam used per unit of production and the quantity of fire woods used per unit of production. In the absence of any plausible explanation given by the appellant along with supporting evidence for the substantial increase in the fuel expenses, the disallowance made by the A O is held to be very reasonable and justified. The addition made by the A O is upheld and this ground of appeal is rejected.