returned a gross profit of Rs 10,56,671/-on a sales turnover of Rs
1,76,11,175/- giving a GP rate ... better than the previous year of 6.06% and thus even on
decreased turnover, the appellant was able to report a GP rate
compared to 2
preceding years, there is also a substantial decrease in turnover as compared
to the immediately preceding year
consonance with increase in turnover for current year, it was
submitted that increase in the turnover may result in increase in GP in absolute
terms ... turnover, it results in decrease in GP %, due
to decrease in the margins, in order to achieve higher turnover. It was
submitted that reason
previous years'
appellate order without ignoring the increase or decrease in turnover of
assessee company each year. The said addition was without taking care
directed the
Assessing Officer to apply NPR to 5.5% on the total turnover of Rs. 1,50,61,240/-.
7. Now the assessee ... authorities below and submitted that the decrease in NPR was due to the increase in
the turnover and this fact has not been appreciated
noticed that
gross profit of the assessee has been decreased from 34.47% of the
total turnover to 26.16% of the turnover whereas turnover has
increased
record. At the outset, we note that the assessee
has declared its turnover in the subsequent assessment year 2014-15 at
rupees 13.87 crores ... year under consideration. Generally, when the turnover
of the assessee increases than the margin decreases, it is because it is
assumed that the assessee
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
that
turnover of the assessee in the assessment year under
appeal is higher as compared to earlier year, but, there is a
substantial decrease
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
