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TMI Blog2015 (10) TMI 1520X X X X Extracts X X X X X X X X Extracts X X X X ..... w and on merits in deleting the addition of Rs. 85,28,745/- on account of suppressed production and sale of AMT cut at Unit G-3 & G-4? (B) Whether on the facts and in the circumstances of the case, the ITAT erred in law and on merits in granting depreciation of Rs. 2,46,135/- the fixed assets in respect of Namoli Unit? (C) Whether on the facts and in the circumstances of the case, the ITAT erred in law and on merits in deleting the addition of Rs. 23,97,748/- on account suppressed sale of blank audio cassettes from Namoli Unit? (D) Whether on the facts and in the circumstances of the case, the ITAT erred in law and on merits in granting deduction u/s 80HH of the Income Tax Act, 1961 of Rs. 67,37,569/- and 80-1 of the Income Tax Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audio/video cassettes at its Unit V in Malanpur. The Daryaganj Unit of the Assessee was trading in audio and video cassettes. 6. For the AY in question, the Assessee had shown production of 1,43,20,025 AMT cuts of various lengths i.e. C-60, C-45 and C-36. The Assessing Officer ('AO') adopted three different methods to examine the question whether the Assessee had understated its production figures. Using the method based on length of the polyester film roll, the AO concluded that production of AMT C-60 cuts had been understated by 16%. In other words, the production was understated by 22,29,256 AMT cuts. Adopting another working method based on the weight of the polyester film roll, the AO concluded that the production of AMT C-60 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was essentially based on facts. The order of the CIT (A) has elaborately discussed the said facts in support of its conclusion. With the factual findings of both the CIT (A) and the ITAT being concurrent, the Court is of the view that no substantial question of law arises for consideration, as far this issue is concerned. 9. Question C relates to addition of Rs. 23,97,748 on account of sale of blank audio cassettes produced at Namoli unit. The Assessee had been selling different categories of cassettes at a price range of Rs. 7.50 to Rs. 22.10 per cassette. This according to the Assessee was its market strategy. The bulk of the sale was made at two price ranges i.e., Rs. 16.45 and Rs. 22.10 per cassette. The AO concluded that the lower pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven according to the AO's own calculations, the content of polyester film in a VMT cut worked out to 76.34 grams. The CIT (A) concluded that the polyester film content of 1 VMT E-180 could not be 90 gm as surmised by the AO because that would exceed the gross weight of the polyester film. The very foundation of the alleged understatement of consumption was therefore found to be misconceived. 90 gm of VMT comprised polyester film (76.34 grams) and chemicals (14 grams). The AO in making the addition did not consider the weight of the chemicals. As a result, the entire calculation was rendered erroneous. 14. On this aspect as well the conclusion of the CIT (A) as affirmed by the ITAT appears to have turned on facts. Consequently, the Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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