correspondence
expenses has not decreased. The assessing officer has worked out the
increase in expenses to 191% and decrease in the turn over ... this regard, the assessee has explained that the
turnover of the assessee has been decreased from 92 crore to 29 crore,
however, fixed nature
turn over
shown during the year under consideration with the total turnover shown in
the preceding assessment year. The assessing officer observed that during ... compared
to the preceding assessment year. There was decrease in the total turnover at
Rs. 26,73,92,917/- as against the total turnover
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
case of the Revenue that
sales turnover of the assessee has decreased or the net
profit ratio is less than the earlier assessment years
noticed that
gross profit of the assessee has been decreased from 34.47% of the
total turnover to 26.16% of the turnover whereas turnover has
increased
record. At the outset, we note that the assessee
has declared its turnover in the subsequent assessment year 2014-15 at
rupees 13.87 crores ... year under consideration. Generally, when the turnover
of the assessee increases than the margin decreases, it is because it is
assumed that the assessee
reconciliation that for F&O reconciliation of turnover as per books with
turnover as per Form No.10DB and Trade Files both are considered ... assessee recorded turnover upto 31-03-2009 it would have resulted in to decrease
in profit by Rs.69,078/-, hence there remains no question
such
the amount of commission expenses decreased in the year under consideration
which was paid against the turnover of Rs. 2633.58 lacs for the year
also has a very high turnover as compared to the assessee and
also fails the quantitative filter of : turnover less than Rs. 1000 crores
applied ... order.
The turnover of Engineers India Ltd. is stated to be 2656 crores as against
the turnover of only Rs.290 crores of the assessee
which net profit rate decreased.
7. We find that during the course of appellate preceding the
details of turnover of profit of the 3 years ... been shown on the gross turnover of
Rs.18.62 crores but surprisingly during the A.Y. 2012-13
turnover has increased toRs. 45.20 crores
