9911796707
TMI Blog1984 (7) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... such plant and machinery worked extra shift. The Department in its ground of appeal strongly relies on the decision of the Madras High Court in South India Viscose Ltd. vs. CIT (1982) 135 ITR 206 (Mad) said to have been pronounced long after Central Board of Direct Taxes circular in this connection. It is however, conceded that the Board s circular supports the direction by the CIT(A). It is not the case of the Department that the circular of the Board has since been withdrawn after the decision of the Madras High Court. If we were to decided the question of extra shift allowance by reference to the interpretation of the relevant provision of statute and the rules thereunder, then we would certainly be bound to follow the Madras High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority of the Supreme Court stated above. In the circumstance, we find no merit in the objection of the Department on this point, which is rejected. 2. Coming to the appeal for the asst. yr. 1981-82, of the two objections raised in its grounds, one relates to the grant of extra shift allowance with reference to the number of days the concern as a whole worked extra shift. For the reasons already stated above in regard to similar dispute for the earlier assessment year, we reject the objection of the Department and uphold the relief granted by the CIT(A). 3. The other objection is with regard to the relief granted by the CIT(A) for allowance, incentive or ex-gratia, besides the payment of bonus. The contention of the Department is that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. We therefore, reject the objection of the Department on this point also. 4. Coming to the asst. yr. 1982-83 the first ground is against the deletion by the CIT(A) of the disallowance of Rs. 12,495 paid by way of damages for delayed payment of the Employees State Insurance premia. According to the Department s stand, the damages were paid for infraction of law and therefore, it is not entitled to deduction in computing the assessee s income. The assessee s ld. Representative submitted that there was no infraction of law, but the delay in payments were on account of circumstances beyond the control of the assessee and though the concerned authorities, namely the Regional Director of the Employees State Insurance Corporation, have not tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances and difficulties on account of which there was delay in the payment. Though the Regional director has not totally waived the amount of damages originally proposed at Rs. 50,333 he has considerably reduced it to Rs. 14,000 odd which shows that he has substantially accepted the explanation of the assessee. It is further seen that the delay in regard to a number of payments is marginal like five to seven days. In the very nature of things the occurrence of such minor delay is inevitable in the day-to-day carrying on of the business and must be regarded as incidental to the same. In these circumstances we are satisfied that the payment cannot be regarded as a payment by way of fine or penalty for infraction of law. The CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch interest may be reduced or waived are stated in r. 40 of the IT Rules. Neither in the section nor in the rules we find any requirement that the ITO can reduce or waive the interest only at the instance or on the application of the assessee. It is obvious to us that when any circumstances indicated in r. 40 is found to be present, it is the duty of the ITO to consider the question of reductions waiver of the interest and if he fails to do so, the assessee can very well agitate the charge in the appeal. We do not find anything in the provisions relating to appeal so as to restrict the scope of the grievances that may be agitated by the assessee. It is well settled that the AAC can do what the ITO has failed to do and also direct him to do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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