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Reason of Lower GP: The assessee is engaged in jewellery business where gold prices are decided in the international markets and assessee had to sale the items at the prevalent price only whereas, stock represents historic price. Any adverse fluctuation effects the GP. Hence there remains no control in the hands of the assessee to maintain the fixed margins.
Results are better: It is submitted that Ld.AO as well CIT(A) both estimated the GP by applying an average rate of GP without giving any weightage to the trend line between increase in turnover and declares in GP. Naturally to increase the turnover the assessee had to forgo some margins. Turnover, GP, along with increase and decrease in GP Rate is depicted by way of a table given below:- 
AY       Sales          GP              GP Rate Increase Decrease in
         Turnover                               in       GP    Rate
                                                Turnover (%)
                                                (%)

2011-    1,92,93,967/- 55,90,497/- 28.98%        -             -


                                                      Shree Jee Jewellers vs. ITO


2012-     3,11,62,210/- 78,45,880/- 25.18%       61.51%       13.11%


2013-     3,90,42,302/- 97,10,459/- 24.85%       25.29%       5.39%
14                                                            (Expected
                                                              Rate     of
                                                              Reduction
                                                              in GP)