side. We have gone through the past results
and find that the turnover of the assessee in assessment year ... find while turnover of the assessee is increasing
from year to year the GP rate is decreasing. It is also not understood
subject and the qualification of Annual Turnover was arrived
in a formula basis and will be increased or decreased according to the
period of completion ... that the
calculation of the Annual Turnover is increased when the period of
completion is shorter and decreased when the period of completion is
longer
terms of percentage of the profit there was decrease
from 1.15% to 0.93% of the total turnover.
-8-
4.8 In view of above ... consideration in comparison to the earlier year but some expenses were
also decreased in comparison to the earlier year. As such all the
expenses were
there is a substantial increase in the
turnover of the assessee, therefore, merely there is a decrease in the GP rate does
not warrant ... decrease
in the GP from 1.08% to 0.92% is not so significant having regard to the three-fold
increase in the turnover. Even otherwise
year under
consideration the gross turnover of the assessee has been reduced to Rs. 629.82
lacs compared to gross turnover of 863.12 lacs to preceding ... ACIT .
Asst.Year - 2013-14
20.73 lacs in spite of decrease in the turnover of the asssessee. Therefore, the
assessing officer has asked the assesse
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
year under
consideration the gross turnover of the assessee has been reduced to Rs.
629.82 lacs compared to gross turnover of 863.12 lacs to preceding ... lacs to Rs. 20.73 lacs in spite of decrease in the turnover of the asssessee.
Therefore, the assessing officer has asked the assesse to justify
that the increase in the expenses under this head is 30.73%. The
turnover of the appellant has increased from Rs. 4.29 crores ... matter of fact, the
increase/decrease of the expenses as well as turnover does not take place in a
mechanical manner since various factors result
Authorised representative objected to same again by pointing to decreasing
proportion of transportation charges to turnover. This is rejected since the nature of
work, manner
years ranging
from 37.64% to 43.04%. The AO observed that though the turnover of
the assessee declined by 17% vis-a-vis the preceding year ... relevant material on
record, it is noticed that though the turnover of the assessee decreased in
comparison with the preceding year, the Assessing Officer
