years ranging
from 37.64% to 43.04%. The AO observed that though the turnover of
the assessee declined by 17% vis-a-vis the preceding year ... relevant material on
record, it is noticed that though the turnover of the assessee decreased in
comparison with the preceding year, the Assessing Officer
through
a substantial downfall which is reflected by the sale turnover and has decreased from
reduced.
ii. That during the year under consideration out of total turnover,
the turnover of Rs. 30,26,21,654/- was in the nature ... rate was due to various factors such as
increased turnover, tough competition in market, decreasing profit
margin etc. I find some force in the appellant
assessee. Moreover, the turnover of the
assessee in the said case was Rs.33.10 crores while the turnover of the assessee in
the present ... rate of 4% on the ground that when the turnover increases, GP rate decreases.
Having regard to all these facts, we are of the view
phase of this company either in terms of turnover or
operating profit margin. Whereas its turnover for the financial year
2004-05 stood ... fact, in sync with the
increase and decrease of the assessee's turnover and profitability in the
earlier two years
admitted a net
income of Rs.14,44,347 at 0.29% of turnover. However,
the net profit admitted ... theao, if
there is increase in the turnover in the subsequent year,
the ratio of profit would decrease. With the introduction
of new plant
locality, comparative
profit rate of the assessee in respect of other years, turnover,
etc. In this case, the Assessing Officer has not considered ... common knowledge that profit
ratio will decrease automatically. In other words, the profit ratio
will decrease when the turnover increases. By taking into
consideration
rate is slightly decreased but the fall is very much justified from
the multifold increase turnover.
Your honour, even the books are rejected than ... should be appreciate.
Considering the above facts I find that the turnover of the appellant also
increase from
under:
4
" 3.2 Regarding decrease in the gross profit and net profit though increase in
gross turnover as compared to the previous year ... compared to FY 2010-11. In reply to cause of decrease in net profit the
assessee submitted that it was mainly on account of provision
case of the Revenue that
sales turnover of the assessee has decreased or the net
profit ratio is less than the earlier assessment years
