assessee has declared following trading results in the
earlier years.
A.Y Turnover Gross Profit GP Rate ... increase in turnover
6
has been achieved by reducing the sale rate of goods sold and margin of
profits thereon. Small decrease
Wipro
Ltd. The learned Counsel pointed out that the segmental turnover of
Infosys was at Rs.156,48,00,00,000/- and that of Wipro ... risk taking capabilities
in cases of high turnover companies, which increase
the margins with rise in turnover. However, in the
6
Tribunal decisions cited
turnover of
Rs.17,36,68,915/- as compared to Net Profit of Rs.71,30,820/- at the rate
of 5% on the turnover ... Profit. It was found by Assessing Officer that security charges have been
decreased from 92.78% shown in the last year to 91.5% during the year
rate at 5% on the total turnover by
keeping in view that there was slight increase in the turnover of the
assessee. Now the assessee ... that the decrease in the net profit rate in
comparison to the preceding year was on account of increase in the
turnover. It was further
Officer noted that assessee's turnover increased
by about 34% comparing assessment year 2005-06, but decreased by 37% from assessment
year
sustaining the assessment of business
income at 8% of the total turnover reported at Rs. 2,78,28,509/-
amounting ... total turnover was
arbitrary and wholly unjustified and further ought to have
appreciated that having not taken note of the increase / decrease
reflected
respectively from the total turnover being
ITA Nos.637 &
645 to 647/Bang/10
Page 13 of 17
discount to customers while computing deduction ... leading to decrease in value of sales. Therefore, it is obvious that
the trade discount has to be reduced from the total turnover. Thus,
this
appellant
has though decreased during the year but it is to be noted that the sales turnover
has increased substantially. In the given circumstances
Officer noted
that the turnover of the assessee has increased, but the gross profit rate
and net profit rate has decreased. The assessee was asked ... profit rate of 8% may not be applied
on the total turnover. Consequently, the show cause notice stated that an
addition
turnover. Hence, any receipt or
expenditure although operating in nature but for which the corresponding
turnover of which is not the part of the turnover ... stand increased or decreased as the case may be but the
denominator will not reflect the inclusion of the corresponding turnover. In
fact, in Para
