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7. We have heard both the parties. Assessment for the asst. year 2002-03 has been completed u/s 143(3) r.w.s. 153A. As per the assessment order, action u/s 132 was conducted in the case of Shri K C Vijayakumar, Director of the assessee company on 31st December, 2003. No discrepancy has been noticed even after conducting search and return was accepted. Assessment for the asst. year 2003-04 has also been completed u/s 143(3) r.w.s. 153A. The net profit declared was 3.69% and the same was adopted at 5%. For this asst. year also, books of account relating to the company were seized. Even on the basis of the seized books of account, the Assessing Officer applied the net profit rate of 5%. The assessment for the asst. year 2004-05 has also been completed u/s 143(3). The returned income has been accepted. Perhaps the net profit rate was accepted because the net profit rate declared for the asst. year 2004-05 was 5.89% i.e. more than 5% applied in the immediately preceding year. It is true that the turnover for the asst. year 2004-05 was more than the declared profit rate. Hence, in the case of the assessee, it cannot be accepted as a matter of principle that increase in turnover will result in decrease in net profit.