With AC off everything is normal but idle engine speed increases when the AC is turned on. So much that the car comfortably do 40-50 kms in fifth gear with throttle lift off. IS this normal or what could be wrong ?
nothing is wrong, its a preventive measure that the ecu takes, the compressor loads the engine, the ecu increases the air going into the engine and also the fuel(air by idle air control valve and the fuel by increasing injector pulse)
means your AAC valve is working perfect nothings wrong man not to worry as Dhhawal said thats what ecu does, if that doesnt happen the car will stall and stop