Assessing Officer the
assessee has not given any reply for decrease in turnover.
9
According to Assessing Officer perusal of documents raise
following important issues ... filed before the
Assessing Officer. It was particularly explained that turnover
11
has decreased because there was some family dispute and out
of two units
view the fact that
the expenditure has doubled, however, the turnover has decreased, the
Assessing Officer made disallowance of 5% on this amount being ... 2013
charges has doubled and the turnover has decreased, is factually incorrect.
In the assessment year 2008-09, these expenses were debited under two
heads
explain the decrease in the net profit, the assessee submitted that the same was
due to fall in the turnover and increased input costs ... that there was decline in the net profit rate
due to decreased turnover cannot be accepted. I find that the AO after considering the reasons
furnish any justification of these
expenses whereas the turnover of the assessee had decreased in comparison to
the last year. The AR during arguments before ... obstructed for a long
time, therefore, there was a decrease in the turnover of the assessee in
comparison to the previous year and the cause
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
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 ... 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
admitted fact that there was a tremendous increase in the
turnover of the assessee which increased from Rs. 5 Crore in the earlier
year ... earlier year, the increase in
the turnover may be a reason for slight decrease in the gross profit rate.
In the present case, the Assessing
income is
assessed at the rate of 3% of the sales turnover of the current year in the light of
book profit declared ... last year. It is commonly observed that when turnover is
increased the profit margin is generally decreased. The assessed income of the
assessee
