reflected G.P. of
Rs.42,56,225/- @ 8.42% on the total turnover of Rs.5,05,71,362/- for
the year under consideration ... against G.P. of Rs.26,64,364/- @
14.06% on the total turnover of Rs.1,89,45,856/- in the preceding
assessment year
restricting the addition of gross profit at 9% on turnover as against 9.5%
made by the AO. The assessee is in appeal challenging the order ... sores and spares by 1.07%, increase in
labour charges by 0.99% and decrease in job charges per meter. The AO
did not accept the explanation
total turnover of Rs.1,54,26,319/- as compared to 34.13% on a turnover
of Rs.1,36,6,026/- in the immediately preceding ... stated that
there was increase in manufacturing expenses by 2.07% and decrease in net margin
on sales of satin ribbon by 6.25% and the cost
yield and also justify as to how the yield of
diamonds had decreased in the current year as compared to
that in the earlier year ... remained
almost constant however on the other hand there is a sharp
decrease in the yield of polished diamonds. The appellant has
not been able
decrease in average sale prices but
no details of increase in labour cost was given. The AO noticed that GP rate was
decreased from ... satisfactory explanation of such fall was given except showing that turnover has
increased to Rs.7.49 crore from Rs.4.20 crores
turnover of Rs.6,01,58,624/-, whereas total
deposits in bank were amounting to Rs.749,28,900/-. After considering the increase
and decrease
that the main reason for decrease in gross profit ratio was
because of higher cost of purchase and decrease in sale price ... assessee and estimated the gross
profit at 5% of the turnover and made the addition on this account.
The addition was challenged before the learned
although turnover
has increased by almost 3 times there is a marginal fall of 2% in gross
profit. However when the current year is seen ... turnover has
increased only 2 ½ times the G.P has fallen by more than 50%. So the
historical data of profit in appellant
Atul Limited,, Ahmedabad vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD BENCH "D
Gmm Pfaulder Ltd.,, Ahmedabad vs Department Of Income Tax
-1-
IN THE INCOME TAX APPELLATE
