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2015 (3) TMI 806 - HC - Income TaxRejection of books of accounts - application of 6% G.P. Rate - transactions with sister concern are liable to be examined as per the provisions of sec 40A(2) - Held that:- CIT(A) to hold that the action of the AO of rejecting the books of accounts is not justified and then considered in detail the various reported decisions with respect to the G.P. Rate and held that since the assessee had furnished complete particulars of transactions, various issues which in turn were analysed and the purchases made from its sister concern as compared with other parties had resulted in excess payment of ₹ 10,02,125/-. The addition under Section 40A(2)(b) was restricted to that sum. The ITAT confirmed this but required the AO to give effect to the order. At the same time, it remitted the matter on certain limited aspects as Ld. CIT(A) has not confronted the AO with the details of transactions furnished by the assessee with sister concern. Under the circumstances, we are of the considered opinion that in the interest of justice the issue should be set aside to the file of the AO for fresh verification. No question of law arises. - Decided against revenue. Disallowance of interest - ITAT decision for directing cancellation of disallowance - Held that:- ITAT recorded that the assessee had sufficient erest-free funds. Consequently, the application of Reliance (2009 (1) TMI 4 - HIGH COURT BOMBAY) cannot be faulted. Being a finding of fact, this Court does not propose to re-examine the matter. Furthermore, we notice that the entire addition is to the tune of ₹ 12,10,000/- and the tax effect is less than ₹ 10 lakhs. Consequently, no question of law arises on this count too. - Decided against revenue.
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