accepted as a
matter of principle that increase in turnover will result in
decrease in net profit.
8. In the case of a contractor ... reproducing the
comparative decrease for both the asst. years:-
Item A.Y. 2004-05 A.Y. 2005-06
(Rs.0 (Rs.)
Turnover
last year balance at Rs.25,54,378/-. Thus, the advance
had decreased during the year under consideration. Copies of all these accounts ... categorically observed that even in case of
fall in turnover there may not be proportionate decrease in the salary as the regular
employees cannot
assessee,
which the department has not accepted as the actual turnover/sale was much more.
That, in fact, the Accountant of the assessee neither ... assessee that with the increase of turnover, generally the N.P rate is decreased.
The plea of the assessee has been that though the figure
from page-1 of the
assessment order itself. The assessee declared total
turnover of Rs.5,69,89,515/- resulting into gross profit ... assessee explained that the
decrease was due to increase in the turnover. However, the
ld. Assessing Officer estimated the gross profit at 30%
which resulted
turnover of Rs. 3,90,72,000 by adopting a rate of 12.5%
profit on turnover. The turnover ... adoption of the turnover and given part relief to the
assessee firm by decreasing the percentage of profit from
12.5% to 6% on the turnover
Assessing Officer in estimating the rate of profit @ 4% of
the turnover for the trading business without making any
allowance for legitimate expenses incurred wholly ... 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
income. In case
of low turnover, net profit margin is higher. However, when business volume or
turnover increases profit margins record reduction because in such ... charging less net profit margins. When volume or
turnover progressively increases then net profit rate decreases. This is an universally
known commercial truth
income. In case
of low turnover, net profit margin is higher. However, when business volume or
turnover increases profit margins record reduction because in such ... charging less net profit margins. When volume or
turnover progressively increases then net profit rate decreases. This is an universally
known commercial truth
income. In case
of low turnover, net profit margin is higher. However, when business volume or
turnover increases profit margins record reduction because in such ... charging less net profit margins. When volume or
turnover progressively increases then net profit rate decreases. This is an universally
known commercial truth
income. In case
of low turnover, net profit margin is higher. However, when business volume or
turnover increases profit margins record reduction because in such ... charging less net profit margins. When volume or
turnover progressively increases then net profit rate decreases. This is an universally
known commercial truth
