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Issues Involved:
1. Penalty appeal for AY 2004-05. 2. Assessee's appeals for AY 2006-07 and 2007-08. 3. Revenue's appeals for AY 2006-07 and 2007-08. Summary: 1. Penalty Appeal for AY 2004-05: - Issue: Deletion of penalty u/s 271(1)(c) for various disallowances. - Judgment: The penalty was levied by the AO but deleted by the CIT(A). The Tribunal upheld the CIT(A)'s decision, citing the Delhi High Court's judgment in CIT Vs Nalva Sons Investments Ltd., where it was held that penalty cannot be levied if the assessment is made u/s 115JB and the regular income is assessed at nil after set-off of brought forward unabsorbed depreciation. The appeal by the revenue was dismissed. 2. Assessee's Appeals for AY 2006-07 and 2007-08: - Earlier Year Expenses: The ground was not pressed by the assessee and hence rejected. - Printing/Raw Material Procurement Expenses: The issue was covered against the assessee by the Tribunal's decision in earlier years. The ground was rejected. - Closing Stock Valuation u/s 145A: The issue was also covered against the assessee by the Tribunal's decision in earlier years. The ground was rejected. - One Time Additional Interest (AY 2006-07): The disallowance was deleted by following the Tribunal's decision in AY 2005-06. The ground was allowed. - Credit Balance Written Back (AY 2006-07): The ground was not pressed and hence rejected. - Interest u/s 234B and 234C (AY 2006-07): The ground was not pressed and hence rejected. - Deduction of Rs. 159 lacs while computing book profit u/s 115JB (AY 2006-07): The Tribunal reversed the authorities' decision, allowing the reduction from book profit. The ground was allowed. - Employees' Contribution to PF (AY 2007-08): The issue was decided in favor of the assessee by following the Supreme Court's judgment in CIT Vs Alom Extrusions Ltd. The ground was allowed. 3. Revenue's Appeals for AY 2006-07 and 2007-08: - Social Forestry Expenses: The issue was decided against the revenue by following the Tribunal's decision in earlier years. The ground was rejected. - Difference in Stock Value: The matter was restored to the AO for fresh decision as per the Tribunal's direction in AY 2004-05. The ground was rejected. - Liability/Provision Written Back (AY 2006-07): The issue was decided against the revenue by following the Tribunal's decision in earlier years. The ground was rejected. - Unexplained Credit: The issue was decided against the revenue by following the Supreme Court's judgments in Sugauli Sugar Works and Kesaria Tea Co. Ltd. The ground was rejected. - Exchange Fluctuation (AY 2006-07): The issue was decided against the revenue by following the Tribunal's decision in earlier years and the Supreme Court's judgment in Woodward Governor (India) Ltd. The ground was rejected. - Raw Material Procurement Expenditure for Book Profit/MAT u/s 115JB: The issue was decided against the revenue by following the Tribunal's decision in earlier years. The ground was rejected. - Reduction of Amount Transferred from Equity Premium for Book Profit/MAT u/s 115JB (AY 2006-07): The issue was decided against the revenue by following the Tribunal's decision in the case of Associated Cement Co. Ltd. The ground was rejected. Conclusion: - All three appeals of the revenue were dismissed. - Both appeals of the assessee were partly allowed.
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