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2018 (3) TMI 881 - AT - Income TaxTrading Addition - G.P. rate determination - Held that:- GP rate declared by the assessee for the year under consideration is 6.056%. Therefore, if we compare the average G.P. of past history with the G.P. declared for the year under consideration the G.P. for the year under consideration is more than the average figure of GP and therefore, even if the books of accounts of the assessee are rejected it may not necessary by lead to any addition to the total income of the assessee. We do not find any reason to interfere with the order of the CIT(A) on this issue. Disallowance of interest on account of charging short interest or interest free loan to the sister concerns - Held that:- The assets and liabilities reveals that during the year under consideration the assessee has added fixed asset of about ₹ 1 crore and further there is an increase of trade debtor from ₹ 2.27 Crores to ₹ 4.08 Crores. The current liabilities show that the borrowing are only for the short term and therefore, are not meant for acquiring the fixed asset. Availability of the assessee’s own fund is required to be examined and verified by considering all the facts. Neither the AO nor the CIT(A) has gone only the factual aspect of the issue. The assessee is also required to filed the proper fund/cash flow statement to show that the availability of the assessee’s own funds for fresh loan and advances given during the year to the tune of ₹ 9.7 Crores. AO to examine the availability of the assessee’s own fund to the extent of the loan and advances given to the sister concerns during the year under consideration. Appeal of the Revenue is partly allowed for statistical purposes
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