same direction and the same ratio in which the turnover
increases or decreases. The underline assumption of these disallowances is thus clearly erroneous
and wholly ... increase or decrease in the same ratio in which the turnover increases or decreases. I am
unable to approve this approach. In view of these
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
Lastly Eclerx does not satisfy turnover criteria as, against the
Assessee's turnover of Rs.26 crores, the turnover of Eclerx
Services ... greater than the 10
times turnover of the assessee.
There are various court rulings wherein 10 times turnover criteria
is considered for eliminating comparables
Ubs Securities India P.Ltd, Mumbai vs Acit Cir 4(2), Mumbai on 16 March
Sulzer Pumps India Ltd, Navi Mumbai vs Dcit 15(3)(2), Mumbai on 23 March
Cadbury India Ltd, Mumbai vs Addl Cit Rg 5(1), Mumbai on 17 February, 2021
