correspondence
expenses has not decreased. The assessing officer has worked out the
increase in expenses to 191% and decrease in the turn over ... this regard, the assessee has explained that the
turnover of the assessee has been decreased from 92 crore to 29 crore,
however, fixed nature
year under
consideration the gross turnover of the assessee has been reduced to Rs.
629.82 lacs compared to gross turnover of 863.12 lacs to preceding ... lacs to Rs. 20.73 lacs in spite of decrease in the turnover of the asssessee.
Therefore, the assessing officer has asked the assesse to justify
that the increase in the expenses under this head is 30.73%. The
turnover of the appellant has increased from Rs. 4.29 crores ... matter of fact, the
increase/decrease of the expenses as well as turnover does not take place in a
mechanical manner since various factors result
turn over
shown during the year under consideration with the total turnover shown in
the preceding assessment year. The assessing officer observed that during ... compared
to the preceding assessment year. There was decrease in the total turnover at
Rs. 26,73,92,917/- as against the total turnover
Authorised representative objected to same again by pointing to decreasing
proportion of transportation charges to turnover. This is rejected since the nature of
work, manner
year-wise detail of investments in shares,
reserve and surplus, business turnover, other income and net profit
from financial year 2002-03 to financial year ... crores in FY 2005-06; whereas business turnover has drastically
decreased from Rs.3 crores in FY 2002-03 to Rs.0.64 crores
year
under reference is on higher side whereas total turnover has been
decreased to 90% from last year. (Last year turnover
preceding year but there is decrease
in the turnover and therefore, this is the objection of learned CIT that the
overall turnover shown
However, keeping in view the fact that the assessee's turnover has
been increased from ... will be justified. It is well settled that when turnover
increases, margin of profit decreases. The rate of GP in the immediate
preceding assessment year
other contentions regarding decrease in direct cost to the extent of Rs.193.41 lakh and
increase in total turnover etc. were never made before ... verification regarding these two claims in connection
with decrease in direct cost and increase in total turnover.
5. We have considered the rival submissions, perused
