2018 (3) TMI 881

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....rred in deleting the Trading Addition of Rs. 60,22,485/- whether the assessee has declared more g.p. in the previous year in comparison to this year. ii) Whether on the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the more interest paid of Rs. 1360558/- in comparison to received interest on advance money. iii) Whether on the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the interest addition amount of Rs. 3038814/- u/s 36(1)(iii) where interest free loan was provided to Shiv Health Food Ltd." 2. Ground No. 1 is regarding 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....

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....past history of GP rate declared by the assessee. 4. On the other hand ld. DR has strongly relied upon the order of the Assessing Officer and submitted that the AO applying weighted average GP rate which is more proper. We find that except for the assessment years 2009-10 and 2011-12 for other assessment years 2008-09 and 2010-11 the GP rate declared by the assessee was accepted by the AO. For the assessment year 2009-10 the G.P. rate was adopted at 5.30% as against the GP rate declared by the assessee at 5.13%. For the assessment year 2011-12 the assessee declared GP rate 4.09% and the 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 t....

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....material on record. The ld. DR has relied upon the order of the Assessing Officer and submitted that when the assessee has failed to establish the nexus between the interest free fund available with the assessee and advance given to the associated concerns the disallowance of proportionate interest is justified. 7. On the other, ld. AR has relied upon 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 ....