during the last year last year as % decrease vis-
year year as % of of turnover à-vis last year
turnover
12. And the assessee
expenditure of wages with that of previous year and its corresponding
turnover. The A.O. had not pointed out any specific defect in the wages ... contrary to the finding of A.O.
the expenditure had decreased and the turnover has increased. It was
further submitted that the assessee has deducted
income from rent has not decreased but there are chances of its increase in case the turnover of the Jain Glass Works (P.) Ltd., goes ... income from rent is not decreased but there are chances of its increase in case the turnover of the General Glass Works Pvt. Ltd., Firozabad
Profit/Net Profit rate of the turnover of
Rs.35.10 crore can be applied to the turnover of Rs.355.82 crore
considering ... Retail Vs. Wholesale and other commodity
transactions where the profits decrease as the turnover
increases. The huge difference in the turnover of current vs.
Preceding
with
independent auditor's report. The turnover of the assessee excluding other
income and increase/decrease in stock, for the year under consideration ... bank statements were already made available and are again being furnished.
The turnover of the assessee in the year under consideration
commission expenses when in fact, the total
decrease in sales is attribution to reduction in export turnover
only whereas, the domestic sales within India
account.
The AO observed that while the decrease in the turnover was
18.82%, the gross profit has fallen down to 46.69% which is
not justifiable
fixing GP% at 7% by taking cue from the part of
turnover (of earlier part of the year) of 5.1% is not sustainable ... years, including relevant financial year) is as under:-
Total Turnover 250758982 736968737 2595778118
Increase/Decrease in -59959722 50871881 23178182
Stock
Total 190799260 787840618 2618956300
Expenses
will appreciate the
fact that with increase in turnover, the net profit ratio is bound to
decrease. This is because of the facts that ... tenders. Similarly,
overhead expenses goes up sharply when we increase the turnover
(Employment of technical personnel with high salaries,
wastage/leakages due to lack
observed that the turnover has reduced as compared to the
preceding year i.e. it has decreased from 1.73 crores to Rs.1.22
crores ... comparison to the earlier year, but in the context of
the reduced turnover in the current year, the increased expenditure
partly explains the negative
