TMI Blog2018 (3) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... garding the trading addition made by the AO was deleted by ld. CIT(A). The assessee company is engaged in the business of Solvex Plant with Refinery and Pungent Plant. During the assessment proceedings, the AO rejecting the books of accounts of the assessee by invoking the provisions of Section 145(3) of the Act. The AO has determined the income of the assessee by applying G.P. rate 6.385% and accordingly, the addition of ₹ 72,22,485/- was made. On appeal, the ld. CIT(A) though upheld the rejection of books of accounts u/s 145(3) however, restricting the addition of ₹ 12,00,000/- as against ₹ 72,22,485/- made by the AO. 3. We have heard ld. DR as well as ld. AR and considered the relevant material on record the AO has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal has estimated GP rate of 4.20%. Therefore, the G.P. which has attained finality shall be consider for taking the average of G.P. The income of the assessee shall be computed on the basis of the average G.P. rate declared and attained finality for the last 5 years which is as under:- A.Y. GP Rate 2008-09 5.34% 2009-10 5.30% 2010-11 2.43% 2011-12 4.20% 2012-13 6.996% 5 year s average 4.8532 The GP rate declared by the assessee for the year under consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the order of this Tribunal for the assessment year 2011-12 and submitted that an identical issue has been decided by the Tribunal in favour of the assessee. The ld. AR has also relied upon the various decisions as under:- ACIT vs. M/s Shiv Agrevo ALtd. In ITA No. 453/JP/2016 dated 11.05.2017. ACIT vs. Ram Kishan Verma 143 TTJ 1. CIT vs. Ram Kishan Verma 132 DTR 107. Munjal Sales Corporation vs. CIT 298 ITR 298. 8. Having considered the rival submissions as well as relevant material on record we are of the view that as far as the principle laid down in the various decisions as relied upon by the ld. AR there is no quarrel that if the assessee s own funds is more sufficient to advance the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance of share capital and reserved fund without examining the application of the fund during the year under consideration other than the loan and advances given to the sister concerns. 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. Accordingly in the facts and circumstances of the case we set aside this issue to the record of the 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. In the result, the appeal of the Revenue is partly allowed for statistical pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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