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2021 (10) TMI 661 - AT - Income TaxAddition u/s. 68 - loan received by the appellant from Sunil Kumar Prashan Kumar HUF & interest thereon - HELD THAT:- We have no hesitation to hold that the assessee has sufficiently discharged the onus which lay upon it in terms of Section 68 of the Act. In this view of the matter, we set aside the order of the CIT(A) on this point and direct the Assessing Officer to delete the addition on this score. Ad-hoc disallowance out of vehicle, travelling and telephone expenses partly sustained by the CIT(A) - HELD THAT:- As the assessee could not, in any manner, controvert the view taken by the CIT(A). The action of the CIT(A) being reasonable on the facts of the case and in the absence of any serious rebuttal thereof, we decline to interfere. GP estimation - adopting GP rate of 9.30% in place of GP rate of 7.03% arising from the book results - assessee contends that it is mainly in the business of imports and any fluctuation in the foreign exchange rate could naturally have cascading effect on the Gross Profit where the contract for sale has already been entered - HELD THAT:- As Gross Profit in the subsequent assessment years have fallen down further from 7.03% to 5.39% in sync with increase in turnover. The book results in the subsequent year have been accepted by the Revenue. Thus, when seen on broader parameters, the book results of the assessee should be believed and should not be discarded. The benefit of doubt, if any, needs to go to the assessee - more so where such mathematical ratios cannot be explained to the hilt. The assessee, to our mind, has explained the fall in GP in a broader reckoning with reasonable particularity. The action of the Revenue Authorities thus deserves to be set aside and the plea of the assessee for restoration of book results deserves to be accepted - Decided in favour of assessee.
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