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Showing contexts for: turnover decrease in Natwarlal Shrichand Sanghvi, ... vs AssesseeMatching Fragments
7. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) confirmed the disallowance by giving following findings in para-3.3.1 and 3.3.2 of his appellate order:-
'3.3.1 I have considered the submission made by the appellant and observation of the year. Only with respect to truck and lorry expenses the appellant has sated that these were classified under a different head in the last year, and these expenses amounted to Rs.23,66,947/-. In respect of the other expenses, namely labour expenses commission expenses and salary and bonus expenses the appellant has failed to explain as to why there is such a disproportionate increase especially when the turnover is only 60% of the last year. In the last year the turnover was Rs.16.72 crores whereas the turnover in the current year is only Rs.10.06 crores and still the labour expenditure is 40% more than last year. In the last year the labour expenses was Rs.7.33 lakh whereas in the current year this expenditure is Rs.10.46 lakh. Similarly, the commission expenditure was Rs.4.48 lakh in the last year, whereas in the current year it is Rs.11.62 lakh and still the appellant has not given any explanation as to why the expenditure has increased disproportionately. With respect to salary and bonus expenses also the appellant has failed to explain why the expenditure has increased 3.5 times as compared to last year, whereas the turnover has decrease to 60% of the last year.