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TMI Blog2012 (7) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... A)-IOV, Surat has erred in deleting the addition of Rs.7,50,000/- made by the Assessing Officer on account of unexplained cash credit. 2. On the facts and in the circumstances of the case and in law, the CIT (A)-IV, Surat has erred in deleting the addition of Rs.1,28,075/- made by the Assessing Officer on account of loss of goods. 3. On the facts and in the circumstances of the case and in law, the CIT (A)-IV, Surat has erred in deleting the addition of Rs.3,30,433/- made by the Assessing Officer on account of low G.P. 4. On the facts and circumstances of the case and in law, the CIT (A)-IV, Surat ought to have upheld the order of the Assessing Officer. 5. It is therefore, prayed that the order of the CIT (A)-IV, Surat may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own total income of Rs.57,200/- but was not aware about the source of income, maintained joint account with her husband and source of loan was not reflected in the incomplete bank statement. He therefore concluded that she was not creditworthy to advance loan of Rs.50,000/-. On the examination of confirmation of Shri Ramesh Gandhi, A.O. observed that in his account cash of Rs.49,000/- was deposited on 8 different occasions before advancing loan of Rs.4,00,000/-.Further as no return of income was furnish before the A.O. the A.O. concluded that creditworthiness of Shri Ramesh Gandhi has not been established. The A.O. thus added the aggregate amount of Rs.7,50,000/-(Rs.3,00,000 + 50,000 + 4,00,000) as unexplained credits u/s. 68. Aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of loan was the repayment of loan received back from Chika Traders, Ahmedabad. It was submitted that this fact was stated in the statement given u/s. 131 by Mr.Shailesh to the A.O. It was further submitted that the aforesaid loan has been returned back through cheques of Rs.1.50 lac each on 25-1-2010 and 20-4-2010 and the assessee has also paid interest on the amount borrowed. With respect to loan from Smt. Kalpana Shah it was submitted that in the statement recorded u/s. 131.Mrs. Shah has confirmed the giving of loan and the source of the deposits was interest and dividend income. It was further submitted that the aforesaid loan has been returned back through cheque on 16-1-2010 and interest has also been paid on the amount bor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowed the loss. Against the disallowance, the assessee preferred appeal before CTI (A). On the basis of submissions made, CIT (A) held that when the quantity, quality and rate of the goods destroyed is not questioned, the loss is an admissible deduction and therefore he deleted the addition made by the A.O. Aggrieved by the order of CIT (A), the Revenue is now in appeal before us. 9. Before us, it was submitterd by the Ld.D.R. that insurance company allowed the loss on the basis of spot enquiry and after verifying the actual position of the loss. It was submitted that loss was settled for a lesser amount, it indicates that the loss claimed by the assessee was not correct. He thus relied on the order of the A.O. 10. On the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this ground. Thus this ground of the Revenue is dismissed. 12. The third ground of appeal relates to the addition on account of low Gross profit. 13. The A.O. observed that the G.P. has reduced from 10.01% in the preceding year to 8.60% i.e. fall by 1.41%. The explanations for the reduced G.P. offered before the A.O. was not accepted by the A.O. and he accordingly worked out the G.P. of Rs.3,30,433/- (at 1.41% on total turnover of Rs.2,34,34,944/-) and added to the total income. Aggrieved by the decision of A.O. the Assessee preferred appeal before CIT (A). CIT (A) was convinced with the submissions made by assessee and deleted the addition by holding that though the G.P. has reduced, the net profit of the assessee has increased. The A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is governed by the regulation of Food and Drug Control Act. All records of purchase and sales are subject to verification by those authorities. No discrepancies have been noticed by them. The reasons for fall in GP have not been controverted by the Revenue nor have they brought on record any contrary facts. Though there has been fall in GP but there is increase in the rate of net profits. The Revenue has not pointed out any defects in the books of accounts of the assessee and has accepted its book results. In view of the totality of the aforesaid facts we are of the view that there is no need to interfere with the order of CIT (A) and we accordingly uphold his order on this ground. Thus this ground of the Revenue is accordingly dismissed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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