stiff competition , hence no increase in
margin on turnover, hence there is decrease in the Gross Profit
margin."
6.8. We have considered rival contentions ... conducted by revenue on
24.02.2009. We have observed that despite increase in turnover, the
assessee is consistently showing a low GP ratio over years
shows that the turnover of the
company has increased by more than 10%
whereas expenses incurred under these heads has
decreased by more than ... these are revenue: expenses, then with the
increase in turnover the same should also
increase/decrease proportionately not
irrationally.
5.6 In view of the above
year under consideration, the
turnover of the appellant company has significantly increased,
as a result overhead expenses per unit were decreased. The
detail
increase
the sales, margin of GP has slightly decreased in as much as the
turnover is roughly doubled. Thus, there is full justification ... increase the
sales, margin of GP has slightly decreased in as much as the turnover is
roughly doubled . The assessee did not submitted details
during the last year last year as % decrease vis-
year year as % of of turnover à-vis last year
turnover
12. And the assessee
selected for complete
scrutiny under CASS for the reasons:
i. Low turnover in comparison to outward foreign
remittance;
ii. Foreign remittance made to persons located ... explanation. The
Assessing Officer recorded that turnover increased from Rs. 84
crores to Rs. 109 crores, trade receivables decreased from Rs.
7.65 crores
2019
M/s. Devu tools Pvt Ltd., Mumbai.
-6-
Income Turnover 2008 2007 2006 2005 2004
Sales ... Decreases in Stock
Gross Profit Turnover
. Bogus purchases allowed 52.20% 48.48% 51.94% 35.52% 40.98%
As expenses
Net Profit/Turnover
Bogus purchases allowed
assessee. Moreover, the turnover of the
assessee in the said case was Rs.33.10 crores while the turnover of the assessee in
the present ... 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
case of the Revenue that
sales turnover of the assessee has decreased or the net
profit ratio is less than the earlier assessment years
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
