TaxTMI 
TaxTMI 
2020 (10) TMI 304
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.... 2006-07. In fact, Tax Appeal No.62/2014 pertains to the Assessment Year 2006-07. Even the Memo of Appeal in Tax Appeal No.13/2015 is identical to the Memo of Appeal in Tax Appeal No.62/2014. 3. Ms. Linhares, however, pointed out that there may be a mistake in stating the correct assessment year in the Memo of Appeal in Tax Appeal No.13/2015. She submits that the relevant assessment year, in so far as the said appeal, would be 2007-08. She, therefore, orally applied for leave to amend the Memo of Appeal. 4. We were inclined to grant the leave to amend the Memo of Appeal and we even indicated as such. However, later on Mr. S. R. Rivankar, the learned Senior Advocate appearing for the Respondent pointed out that vide Judgment and Order ....
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..../- ignoring the fact that the Assessing Officer has disallowed deduction under Section 80IC of the IT Act, for Nalagarh Unit on basis of alleged disparity in ratio between consumption of electricity and sales in different assessment years in appellant different Unit ? (C) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal, is right in admitting the new evidences such as details of expenditures incurred by the assessee along with the copy of accounts and necessary evidences in the shape of the bills, vouchers and other documents which were not produced earlier before the AO without giving any opportunity to the AO ? 8. Tax Appeal No.13/2015 was admitted by order dated 9th April, 2015 on t....
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....med, really will not even arise. 15. In so far as the substantial question of law 'A' is concerned, the only reason why the AO denied the Assessee deduction under Section 80IB was, because, the Assessee in Form No.10CCB failed to provide the details of number of workmen working in each of the Units of the Assessee. Now, although it is true that there was this omission on the part of the Assessee whilst filling in the Form 10CCB, it is not as if this omission was not rectifiable. In fact, the AO should have granted the Assessee an opportunity for rectifying this omission. 16. Ultimately, the Assessee even prior to the assessment, produced material before the AO, which evidences that each of the Units of the Assessee employed mo....
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.... indicates that the Assessee, in this case, had offered detailed explanation as to why the production and consequently profits at the Nalagarh Unit is higher than the production and profits at the Units in Goa and Daman. The explanation is summarized in paragraph 6.2 of the AO's order, which reads as follows : "6.2 The reasons for such peak performance in one unit selectivey were brought to the notice of the assessee's representative. The assessee in its letter dated 09-11-2011 has submitted that the comparison of the sales of Nalagarh Unit with the sales of the other units with regard to electricity expenses is for the following reasons: a) The machineries at Goa Units are 20 years old whereas the machineries at D....
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....rrectly held that the alleged mismatch between the production and the profits at the various Units as determined by consumption of electricity at such units, cannot be the sole ground for concluding that there has been some unreasonable inflation of profits. The two authorities have held that several factors can contribute to the increased profits and upon consideration of such several factors which were not only pleaded, but made good by the Assessee to conclude that there was no good ground to deny the Assessee deduction under Section 80IC of the Income Tax Act. According to us, the two authorities, having recorded the concurrent findings on this issue, the substantial question 'B' does not deserve to be answered in favour of the ....
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....cturing only two colour printing, whereas the Daman Unit is manufacturing six colour printing and Nalagarh Unit is manufacturing in multiple colours. The machineries at Nalagarh are fully automatic and technically advanced with much higher output i.e. more than 10 times higher than machineries at Goa and Daman which are capable of achieving this production more efficiently with less than consumption of electricity. The requirements of customers at Goa Unit are different from those of Daman Unit. The quality of printing, sale value and contribution of Nalagarh Unit is much higher as compared to other units. The products manufactured at Goa & Daman are excisable products whereas Nalagarh Unit is excise exempt for 10 years. Moreover t....