If directors admitted that installed capacity has not enhanced, then same cannot be contradicted by a report of the CA to claim additional depreciation

Anjani Synthetics Ltd Vs Dy CIT (ITAT Ahemdabad)- The assessee’s Counsel did not dispute the Directors’ Report which states that the installed capacity of current and previous year is not ascertainable. It would, therefore, show that the management was aware of the fact that the installed capacity has not been enhanced even if some plant and machinery were purchased. The Directors’ Report is virtually an admission of the fact which can not be contradicted by the report of the Chartered Accountant. The AO even on merit noted that

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