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Sr. No. F.Y. Turnover Employee Employee Net Profit Net Profit in Lacs Cost in cost in % in Lacs in % Lacs 1 2012-13 506.03 191.48 37.84% 48.16 9.52% 2 2013-14 325.24 166.86 51.30% 24.87 7.65% 3.2. From the above table, it can be seen that assessee's net profit has decreased by 1.87%, whereas the employee cost increased by 13.46 %. Despite steep decrease in turnover, with almost same amount of overhead costs one cannot achieve reasonable net profit for the year under consideration. The assessee being engaged in repairing of power generation transformer, the turnover depends on the nature of job received by it. The nature of job, number of jobs depends on the wear and tear of transformer. Thus the assessee to keep team of workers for whole the year, whether work is there or not. Even there is always keen competition to get the repairs jobs, the assessee required to quote reasonable rate for the job. The quantum of job is not continuous, whereas overheads are constant in nature. Hence the profit margin or profit ratio cannot be directly linked with turnover of the nature of assessee business. The assessee is not engaged in any product driven industry, wherein the margins per product are more or less fixed. There is reduction in turnover from Rs.5.06 crores in financial year 2012-13 to Rs.3.25 crores in financial year 2013-14. There is reduction in turnover by 35.77% compared to last year. Overheads and normal business expenditures are incurred throughout the year. Hence there is impact on the profits of the assessee company, and its books of accounts are audited. The transactions are supported by I.T.A No. 2367/Ahd/2018 & 917/Ahd/19 A.Y. 2014-15 Page No 5 Baroda Industrial Electrical Products Pvt. Ltd. Vs. ITO necessary evidences in the form of bills and vouchers. Book results have been accepted in past. Assessee's main revenue is from service & repairing, which is not fixed, it depends on customer requirements, whereas overheads-are fixed. Therefore the assessee requested to accept the book results as true and genuine.