increase of turnover and manufacturing activities as
against job work charges and due to flood gross profit has marginally
decreased. However, ld. Assessing Officer ... ignored some important facts which needs consideration in
adjudicating this issue:-
(1) Turnover of the assessee has more than doubled in Asst. Year
applying the upper limit of 200 crorers for the
turnover filter applied by the TPO by placing
Date of Judgment ... turnover filter even when
the turnover has no linkage with the margins
and in fact the TPO in order demonstrated that
when turnover is high
against 91 % in the immediately preceding year. Thus, there appeared an abnormal
decrease in the yield of finished products during the year under consideration ... copper scrap in the lesser turnover where as in the current year
on the increased turnover it has purchased lower copper scrap of 11.65 lakh
observed that the turnover for the year under consideration
has increased from the previous years, however the GP rate
has decreased from the preceding previous ... further submitted that in normal
circumstances GP rate is inversely related to turnover, i.e. increase in
turnover usually results in lower GP rate
products, even the sale
price decreased in comparison to the preceding year. Moreover, the
appellant's turnover increased from 11.60 crores
last year. In appellate proceedings AR has not
filed proper justification for decrease in G.P. rate to 4.64% however I find that
GP rate ... higher side, GP rate of 20% of declared
turnover is applied. Assessee gets resultant relief. This ground of appeal is
partly allowed."
Ground
that this is an
admitted fact that there is a suppression of turnover. Therefore, that
itself is sufficient reason for rejection of books of account ... books of account, the
admitted facts are that there is suppression of turnover. We find that
this sole reason is sufficient for rejection of books
assessee has submitted
that the turnover of the assessee is Rs.86 Crores whereas the turnover of the
Laxmi Machine Works Ltd. is Rs.1745 ... 7861/Mum/2011) and submitted that while
considering the issue of turnover filter in case of ITES the Tribunal observed
that the concept of economy
that assessee has not
explained the decrease in GP from 8.45% to 5.88%. Only apparent
explanation is that turnover of the assessee has increased three
fact that the turnover of the
assessee in year under consideration has not increased as compared to last
year but has decreased
