margin business increases, then the overall profitability
decreases and vice versa.
g) The amount of turnover during the year under consideration is
highest in comparison
years
the percentage of wages to turnover has been from 2.59% to 5% depending on the
total turnover. It is seen that in accounting year ... turnover of 5.28 crores which shows that in spite of
a huge increase in turnover the wages have actually decreased compared to the
last
same. The assessee is engaged in silk saree trading and achieved turnover of
Rs.1,66,79,636/-. The AO, in an arbitrary manner, accepted ... very next AY there is a decrease in the sales
turnover and consequently, the cash deposit would also be less in comparison
to the subject
assessment
proceedings, assessee was asked to explain decreasing in GP when
there was an increase in turnover. It was also observed by the AO
that
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
justified, as the turnover of assessee has increased decreasing the profit margin.
Having considered facts and circumstances of the case I find that the assessee
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
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
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
