TMI Blog2016 (9) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... s between the component mix of the two. In so far as the report of Rajasthan Consultancy Organisation Ltd. Is concerned, we find that the organisation is sponsored by several Financial Institutions/Banks and all are public sector undertakings. Thus, this report is more credible/reliable. Moreover, the report is based on inspection of assessee’s place and actual physical verification of process and production. We do not accept the contention of the Id. D/R that this report should not be believed. However, considering the facts and said report, we hold that it would be fair and reasonable if the weight gain is adopted at 7.5% in the case of appellant. The AO has prepared the calculation of undisclosed income at page 19 of assessment order in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee on account of interest income on undisclosed advances of ₹ 42,34,000/- Asstt. Year Undisclosed income 92-93 ₹ 8,81,016/- 93-94 Rs. 10,40,675/- 94-95 Rs. 10,14,844/- 95-96 Rs. 9,91,147/- 96-97 ₹ 13,18,900/- ₹ 3,60,000/- 97-98 ₹ 11,40,088/- ₹ 16,37,440/- 98-99 (i.e. 1.4.97 to 17.9.97) Rs. 3,45,475/- Rs. 9,31,480/- Total ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losed? (4) Whether in the facts and circumstances of the case, the ITAT was justified in setting aside the interest income when the limited dispute before it that it should be taxed on the accrual or receipt basis ? (5) Whether in the facts and circumstances of the case, when the assessee is maintaining books of accounts on mercantile basis then the interest should be calculated on accrual or receipt basis ? 3.1 While admitting the appeal, no substantial question of law was framed and cross-objections have also been preferred by the assessee. 4. We have heard the learned counsel for the parties. 5. Mr. Mathur has contended that the Assessing Officer after considering the evidence on record and the statement recorded and docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t this report should not be believed. However, considering the facts and said report, we hold that it would be fair and reasonable if the weight gain is adopted at 7.5% in the case of appellant. The AO has prepared the calculation of undisclosed income at page 19 of assessment order in a table taking the weight gain at 15%. We hereby direct the AO to recalculate the undisclosed income by adopting 7.5% in place of 15% in the said table. We hold accordingly. 8. In our view, the view taken by the Tribunal is just and proper and no interference is called for. The substantial questions which have been raised, in our opinion, are appreciation of evidence of law on the basis of evidence on record. 9. In that view of the matter, all the issu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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