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TMI Blog2017 (6) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A) has applied a Gross Profit 6.81% on Rs. 94.69,305/- in Kirana Items and 4% on Rs. 1,91,83,681/- in Refined Oil. The addition as sustained at Rs. 3,86,188/- on account of alleged less Gross Profit is arbitrary, unjustified and misconceived. The addition as sustained is fit to be deleted. 3. For that in the facts and circumstances of the case, the learned CIT(A) is not Justified in confirming the addition / disallowances of Rs. 3,00,000/- under the head "Interest Account" on account of availability of cash in cash book on certain date. The addition / disallowances of Rs. 3,00,000/- as made / sustained with respect to payment of interest on unsecured loan is arbitrary, unjustified and bad in law. In any case, the addition as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) is not justified in sustaining the disallowances of Rs. 3,153/- being 10% out of mobile expenses of Rs. 31,5338/-. The disallowance as sustained is arbitrary and unjust. The same is fit to be deleted. 9. For that in the facts and circumstances of the case, the learned CIT(A) is not justified in sustaining the disallowances of Rs. 1,541/- being 10% out of motor cycle expenses of Rs. 15,414/-. The disallowance as sustained is arbitrary and unjust. The same is fit to be deleted. 10. For that the charge of interest u/s 234B is arbitrary and unjust." 2. Ground 1 is general and does not need any adjudication. 3. Apropos ground 2 regarding addition on account of low gross profit. 4. The AO noted that assessee has shown gross profit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial cash in hand in the books of account. The reasons for carrying substantial cash was attributed by the assessee to proposal to purchase capital asset. On these factual conspectus, the lower authorities found that there was no need for the assessee to take loan and hence, interest expenditure was disallowed. Against this order, assessee is in appeal before ITAT. 9. I have heard both the counsels and perused the records. I find that it is none of the business of the revenue to decide as to how the assessee shall conduct his business. Whether the assessee should take loan or utilize internal resources is the sole prerogative of the assessee. It is not the case that the assessee has not paid the interest. As held by Hon'ble Apex Court in CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being heard. 13. Apropos ground 5, addition on account of loss on fire. 14. The AO has noted that assessee has debited / claimed loss on fire amounting to Rs. 67,518. It was noted that assessee had claimed total loss in fire of Rs. 2,82,945. But the insurance company has accepted claim of Rs. 2,15,427 subsequently on 29-06-2005. Since the balance amount of R.67,518 was not recoverable, the assessee had written it off in the P&L Account as bad debt. Ld.CIT(A) has confirmed this addition by holding that this debit in the P&L Account was not backed by supporting material. 15. Upon hearing both the counsels and perusing the records, I find that it is not clear as to how this loss has arisen, whether it is a case of stock loss or a claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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