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Showing contexts for: turnover decrease in J C Home Tex, Jaipur vs Assistant Commissioner Of Income Tax ... on 10 July, 2024Matching Fragments
From the perusal of chart above, it is clear that the rise in GP ratio is solely due to the fact that the value of excess stock found is duly incorporated in the books of accounts which has resulted into the increase in % of profits offered for taxation.
Whereas ld. CIT(A), without considering this, has computed GP rate of 23.9% by completely ignoring the fact that there is almost 50% rise in turnover and it is not possible for any business to achieve both increase in turnover and a simultaneous jump in profit also. In fact, in normal circumstances, increase in turnover is coupled with decrease in GP rate, whereas assessee has been able to maintain GP rate.