previous years'
appellate order without ignoring the increase or decrease in turnover of
assessee company each year. The said addition was without taking care
which net profit rate decreased.
7. We find that during the course of appellate preceding the
details of turnover of profit of the 3 years ... been shown on the gross turnover of
Rs.18.62 crores but surprisingly during the A.Y. 2012-13
turnover has increased toRs. 45.20 crores
totality of facts 15%
gross profit rate if applied on the turnover of the gold jewellery items will
meet the ends of justice for estimation ... been declared. The rate of silver per kg has not
increased or decreased drastically. From the information available on
internet the rate of silver
sale figure is computed on the basis of
decrease in stock. For these reasons Ld. A.O rejected the books
results and in view ... Taxman 384 (M.P) estimated the
net profit @ 3.5% on the total turnover for the year. Ld. A.O also
gave instances of other assessee
before the Ld. CIT(A), discrepancy was
reconciled. He submitted that the turnover has increased
to Rs.86.65 lakhs as against ... addition is primarily
based on the fact that the gross profit showed decrease of 127.34 percent as
compared to last year in respect of trading
last two years net profit
rate applied the same on the turnover disclosed by the assessee and
after comparing with the profits disclosed ... then the net profit for the year under
appeal would not have decreased very significantly from the
preceding year and would have been consistent
