Smt. Manju Agrawal, Bhopal V. The ACIT 3(1), Bhopal

ITA 44/IND/2012

• Counselvise Citation: 4422714 RSA 2012
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 01-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARM A, A.M. PAN NO. : ABTPA2215R I.T.A.NO. 44 /IND/201 2 . A.Y. : 2006 - 07 SMT. MANJU AGRAWAL, ACIT, BHOPAL VS 3(1), BHOPAL APPELLANT RESPONDENT APPELLANT BY : SHRI AMIT JAIN, C. A. RESPONDENT BY : SHRI R.A.VERMA, SR. DR DATE OF HEARING : 28 .0 8 .2012 DATE OF PRONOUNCEMENT : 06 . 0 9 .201 2 O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) DATED 14.10.2011 FOR THE ASSESSMENT YEAR 2006-07 IN THE MATTER OF IMPOSITION OF PENALTY U/S 271(1)(C) O F THE INCOME- TAX ACT, 1961,. -: 2: - 2 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE ASSESSING OFFICER HAS LEVIED PENALTY OF RS. 15,000/- WITH RESPECT TO ADDITION OF RS. 89,200/- O N ACCOUNT OF REDUCTION IN WASTAGE IN MANUFACTURING PROCESS OF WOODEN PACKING CASES AND PACKING MATERIAL. THE ASSESSING O FFICER ALLOWED WASTAGE OF 5% ON PACKING MATERIAL AND NO WA STAGE HAS BEEN ALLOWED ON PINE WOOD PACKING MATERIAL. THE ASSESSING OFFICER ALSO LEVIED PENALTY FOR SUCH REDU CTION IN WASTAGE AS CLAIMED BY THE ASSESSEE. HOWEVER, THE AS SESSEE DID NOT FILE ANY APPEAL AGAINST THE QUANTUM ADDITION. T HE ASSESSING OFFICER HAS LEVIED PENALTY OF RS. 15,000/ - FOR SUCH DISALLOWANCE/ADDITION, WHICH WAS CONFIRMED BY THE L D.CIT(A) AND THE ASSESSEE IS IN FURTHER APPEAL BEFORE US. 3. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM RECORD THAT FOR SIMILAR DISALL OWANCE OF WASTAGE WAS MADE IN THE ASSESSMENT YEAR 2003-04, TH E ASSESSEE FILED APPEAL BEFORE THE CIT(A), WHO HAS AL LOWED THE WASTAGE ON PACKING CASES AT 17 % AND ON PACKING MAT ERIAL AT 5%. AN APPEAL WAS FILED BY THE DEPARTMENT AGAINST T HE ORDER -: 3: - 3 OF CIT(A) AND THE TRIBUNAL VIDE ITS ORDER DATED 29. 2.2012 IN ASSESSEES OWN CASE CONFIRMED THE ORDERS OF CIT(A) ALLOWING WASTAGE AT 17 % IN CASE OF PACKING CASES AND 5% IN THE CASE OF PACKING MATERIAL. IF WE APPLY THIS PERCENTAGE OF WA STAGE TO THE YEAR UNDER CONSIDERATION, NO ADDITION WILL BE WORKE D OUT. THUS, THERE IS NO EXCESS CLAIM OF WASTAGE AND ON TH AT BASIS, THE DISALLOWANCE OF RS. 89,200/- WAS NOT JUSTIFIED. HOWEVER, SINCE THE ASSESSEE HAS NOT FILED APPEAL AGAINST THI S ADDITION, WE ARE NOT CONCERNED WITH THE ADDITION/DISALLOWANCE OF RS. 89,200/- BUT DELETE THE PENALTY OF RS. 15,000/- IMP OSED WITH RESPECT TO SUCH DISALLOWANCE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 6 TH SEPTEMBER, 2012. SD/ - SD/ - (JOGINDER SINGH ) (R. C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 6 TH SEPTEMBER, 2012. CPU* 5693