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Showing contexts for: turnover decrease in M/S. S. K. Jain Infrastructure (P) Ltd., ... vs D C I T 1(1), Bhopal on 28 January, 2022Matching Fragments
M/s. S.K. Jain & S.K. Infrastructure Pvt. Ltd.
ITA No.34 to 36/Ind/2019
4. Aggrieved assessee is in appeal before this Tribunal.
5. The only request made by the ld. counsel for the assessee is that in the earlier years the turnover was very high, but subsequently the turnover has decreased drastically and therefore, fixed cost could not be reduced in that proportion, and therefore the net profit has declined so relief should be granted by lowering the net profit rate.
6. Per contra, ld. DR supported the order of both lower authorities as well as the order of this Tribunal dated 17.05.2016.
7. We have heard rival contentions and perused the records placed before us. We notice that both the assessees are carrying similar type of business and in past this Tribunal vide ITANo.433 & others dated 17.05.2016 estimated the net profit @ 6.20% in the case of M/s. S.K. Jain Infrastructure Pvt. Ltd. and net profit rate of 6.15% in the case of M/s S.K. Jain. We also notice that the turnover of both the assessee(s) has declined and its almost 50% of the turnover as were dealt by this Tribunal during F.Y.2012-13. Apart from this fact Ld. counsel for the assessee cannot bring any other fact on record to pin point that fixed expenditure coupled with decreased turnover has led to decrease in profit.