high as compared to
earlier years despite the fact that the turnover has decreased in
comparison to earlier years and accordingly book results were
rejected ... were called for with regard to
disproportionate expenses as compared with the turnover/sales. It
was further submitted that the AO only proposed to disallow
Percentage increase is 138.
(ii) Decrease in turnover over the preceding year's : Rs.1,94,80,818/- percentage
decrease is 11.7
(iii) Number ... produced for
verification.
(vi) Decrease in freight receipt over the preceding year's : Rs.1,62,558/- percentage
decrease is 2.9.
On analysis
certificate of the machinery was provided to
the AO. There was decrease in turnover from 2.19 crores to 1. 48 crores which
further suggested that
year under consideration
gross loss is shown at 28.27% of the turnover whereas in the immediately
preceding year, GP was shown at 13.64%. Thus, there ... sought to explain the fall on the ground that the
turnover has substantially decreased this year. Last year the turnover
loss at
Rs.39,10,774/-. The assessee on the total turnover of Rs. 10,36,80,512/- had
shown Gross Profit ... leading to reduction in G.P. ratio. Due to
sharp decrease in export turnover, there was decrease in overall profit margin. It
was pointed
While checking the data it has been observed that the total
turnover of the company has fallen in the very next month of the incident ... certification.
Our observation are as follows:
Loss of Business due to decrease in Turnover 36,63,553/-
Loss of Profit due to decrease in Business
from the information
provided by the assessee it was obvious that the turnover in
the expanded unit had increased from Rs.65.49 lacs ... first unit. Finally, the tribunal held:-
“Though increase or decrease in the turnover by itself may
not be of much consequence in the scheme
instant case, the issue is with regard to the term “Total
turnover”.
6. The assessee is a manufacturer and exporter of stainless steel
utensils ... that if the total turnover increases, the
advantage which the assessee would get under Section 80HHC would
decrease because the amount deductible substantially depends upon
turnover is above Rs. 40 lakhs. But then it cannot be said that as and when the turnover increases, the net profit decreases
petition is not maintainable because the petitioner has not alleged that his turnover exceeds Rs. 40,000 so as to make him liable ... indulging in a running business whose turnover is not fixed but is liable to increase or decrease and, therefore, if the petitioner believes that
