2014 (8) TMI 802 - AT - Income Tax

Penalty u/s 271(1)(c) Additions deleted in quantum proceedings Held that - CIT(A) had deleted the penalty by considering the order passed by the Tribunal in quantum proceedings deleting the additions, forming foundation for the imposition of penalty assessee was fair enough to state that the Revenue s appeal against the Tribunal order in quantum proceedings for AY 2003-04 has been accepted by the Hon ble High Court to the extent that such order has been set aside by restoring the matter to the lower authorities - No objection was raised by the revenue thus, the order is set aside and the matter is remitted back to the AO for fresh adjudication Decided in favour of Revenue. Variation in the figures of sales as per the trading account and sales tax order Held that - The AO has categorically recorded that the assessee did not furnish any explanation about the difference in the figures of turnover included in the annual accounts and month-wise details furnished during the course of assessment proceedings - CIT(A) did not call upon for any remand report from the AO thus, the matter is liable to be remitted back to the AO Decided partly in favour of Revenue. Expenses on ad-hoc basis Held that - The AO observed that during the course of assessment proceedings that the assessee could not produce certain bills/vouchers of the amounts claimed under the heads Advertisement expenses, Conveyance, Furnace repairs, Office maintenance, Packing and forwarding expenses, Printing and stationery, Traveling expenses, Vehicle running and maintenance, Freight and carriage etc. - certain expenses claimed by the assessee were not backed by proper evidence the order of the CIT(A) is upheld Decided against Assessee.

Summary

Issues:
1. Penalty deletion under section 271(1)(c) for assessment year 2003-04.
2. Rectifiable mistake regarding excise duty receivable for assessment year 2006-07.
3. Addition deletion based on sales figures variation for assessment year 2006-07.
4. Excise duty addition deletion for assessment year 2008-09.
5. Disallowance of expenses on ad hoc basis for assessment year 2008-09.
6. Excise duty addition deletion for assessment year 2009-10.
7. Disallowance of expenses on ad hoc basis for assessment year 2009-10.

Analysis:

Assessment Year 2003-04:
- The appeal by the Revenue was against the penalty deletion under section 271(1)(c). The Tribunal remitted the matter to the AO for a fresh decision in line with the quantum proceedings.

Assessment Year 2006-07:
- The issue was about excise duty receivable not credited to the profit and loss account. The Tribunal upheld the deletion of the addition based on previous decisions for similar years. Another issue was the deletion of addition due to sales figures variation, remanding the matter to the AO for fresh consideration.

Assessment Year 2008-09:
- The Revenue appealed against the excise duty addition deletion and the disallowance of expenses on an ad hoc basis. The Tribunal upheld the deletion of the excise duty addition but confirmed the disallowance of expenses based on lack of proper evidence.

Assessment Year 2009-10:
- The Revenue's appeal was against the excise duty addition deletion, which was upheld by the Tribunal. The assessee's cross objection was about the disallowance of expenses on an ad hoc basis, which was partly allowed based on the percentage sustained in the previous year.

In conclusion, the Tribunal addressed various issues related to penalty deletion, rectifiable mistakes, additions deletions, and disallowance of expenses across different assessment years, providing detailed reasoning and referring to precedents to support their decisions.