respectively from the total turnover being
ITA Nos.637 &
645 to 647/Bang/10
Page 13 of 17
discount to customers while computing deduction ... leading to decrease in value of sales. Therefore, it is obvious that
the trade discount has to be reduced from the total turnover. Thus,
this
reflected G.P. of
Rs.42,56,225/- @ 8.42% on the total turnover of Rs.5,05,71,362/- for
the year under consideration ... against G.P. of Rs.26,64,364/- @
14.06% on the total turnover of Rs.1,89,45,856/- in the preceding
assessment year
both
the cases was same i.e. `.2,18,71,876/-. The decrease in profit in the
revised return was due to increase in labour ... Assessing
Officer had estimated the profits on the basis of 8% of turnover.
However, the penalty was imposed because of the failure on the part
restricting the addition of gross profit at 9% on turnover as against 9.5%
made by the AO. The assessee is in appeal challenging the order ... sores and spares by 1.07%, increase in
labour charges by 0.99% and decrease in job charges per meter. The AO
did not accept the explanation
assessment was getting time barred. The
A.O compared the turnover of the assessee in the preceding year vis-à-
vis the expenditure like wages ... telephone, diesel expenses etc.,
from the point of view of increase or decrease in the said expenditure.
So far as the disallowance of wages
total turnover of Rs.1,54,26,319/- as compared to 34.13% on a turnover
of Rs.1,36,6,026/- in the immediately preceding ... stated that
there was increase in manufacturing expenses by 2.07% and decrease in net margin
on sales of satin ribbon by 6.25% and the cost
decrease in average sale prices but
no details of increase in labour cost was given. The AO noticed that GP rate was
decreased from ... satisfactory explanation of such fall was given except showing that turnover has
increased to Rs.7.49 crore from Rs.4.20 crores
yield and also justify as to how the yield of
diamonds had decreased in the current year as compared to
that in the earlier year ... remained
almost constant however on the other hand there is a sharp
decrease in the yield of polished diamonds. The appellant has
not been able
that the main reason for decrease in gross profit ratio was
because of higher cost of purchase and decrease in sale price ... assessee and estimated the gross
profit at 5% of the turnover and made the addition on this account.
The addition was challenged before the learned
although turnover
has increased by almost 3 times there is a marginal fall of 2% in gross
profit. However when the current year is seen ... turnover has
increased only 2 ½ times the G.P has fallen by more than 50%. So the
historical data of profit in appellant
