2012 (3) TMI 584 - AT - Income Tax

Summary

Issues involved: Quantum appeals for two different assesses, penalty imposed u/s 271(1)(c) of the Act for the same assessment years.

Judgment Details:

1. Quantum Appeal - Gomti Silk Mills Ltd. (ITA No.2898/Ahd/2006 for A.Y.2003-2004):
- Ground Nos. 1 and 2 challenged the addition of specific amounts.
- Assessee argued discrepancies in the P&L account and stock details.
- Tribunal found that the addition cannot exceed the debited amount in the P&L account.
- Tribunal set aside the CIT(A)'s order and remanded the matter to the AO for fresh decision.
- Grounds 1 and 2 allowed for statistical purpose.

2. Quantum Appeal - Gomti Fibres Ltd. (ITA No.2899/Ahd/2006):
- Grounds challenged additions and interest charges.
- Assessee pointed out discrepancies in the consumption of raw material and stock details.
- Tribunal observed that the addition was not justified as the material was not consumed in the present year.
- Order set aside and matter remanded to the AO for fresh decision.
- Appeal allowed for statistical purpose.

3. Penalty Appeals:
- Since additions were set aside in quantum appeals, penalties were also deleted.
- AO can initiate penalty proceedings again if new additions are made.
- Both penalty appeals allowed.

In conclusion, both quantum appeals were allowed for statistical purposes, and penalty appeals were also allowed as penalties were deleted due to the set-aside additions.