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TMI Blog2015 (6) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... urther note that there has been a huge and over 100% increase in the turnover as compared to preceding year. Hence, the explanation that increase in turnover has affected margin cannot be brushed aside. In these circumstances, we uphold the order of the learned CIT(A) and delete the addition on account of low gross profit. Ground no.1, is dismissed. Addition u/s 40A(2)(b) on account of interest paid - Assessee submitted before us that bank interest rate cannot be compared with the rate of interest on unsecured loan and that even bank charges interest @ 24% on credit card - As regards loan from Shri Trilochan Singh Chawla, he submitted that it was for a short period of six months - HELD THAT:- We agree that the interest paid on unsecured loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition on presumption. The Assessing Officer has computed that per member per month withdrawal by the assessee s family was 3,500. Hence, we do not find any reason to interfere with the order of the learned CIT(A). Accordingly, ground no.4 is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... cer also noted that there was some absence of authenticity and genuineness of bills and vouchers. However, the Assessing Officer did not make any specific instances. The Assessing Officer also noted that the assessee was not maintaining day-to-day stock book, hence, the Assessing Officer rejected the books of account and estimated the gross profit @ 6.37% and made an addition of ₹ 4,77,000. 4. Upon the assessee's appeal, the learned CIT(A) deleted the addition. He held that the Assessing Officer has not brought any material on record which can suggest that books of account of the assessee are not correct and complete. 5. After hearing both the parties, we are in agreement with the observation of the learned CIT(A) that the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted before us that bank interest rate cannot be compared with the rate of interest on unsecured loan. He submitted that even bank charges interest @ 24% on credit card. As regards loan from Shri Trilochan Singh Chawla, he submitted that it was for a short period of six months. He claimed that in the assessment year 2007-08, the rate of interest @ 18% was accepted in scrutiny assessment. 9. Per-contra, the learned Departmental Representative relied upon the order of the Assessing Officer. 10. Upon careful consideration, we agree that the interest paid on unsecured loan cannot be compared with bank interest rates. Furthermore, similar rate of interest has been paid by the assessee in other assessment years which has been accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition. Against the above order, the Revenue is in appeal. 13. After hearing both the parties, we note that there has been substantial increase in the turnover of the assessee, hence, the claim that it was the efforts of the commission recipients that brought a huge increase in the turnover cannot be rejected. It is a settled law that the Assessing Officer cannot sit into the shoes of the assessee and decide as to what is reasonable. Accordingly, we uphold the order of the learned CIT(A). Ground no.3, is dismissed. 14. Apropos ground no.4; on this issue, referring to the capital gains of the assessee, the Assessing Officer opined that all the members of the assessee family are bestowed with substantial accumulation of capital. Making an es ..... X X X X Extracts X X X X X X X X Extracts X X X X
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