sustaining the assessment of business
income at 8% of the total turnover reported at Rs. 2,78,28,509/-
amounting ... total turnover was
arbitrary and wholly unjustified and further ought to have
appreciated that having not taken note of the increase / decrease
reflected
respectively from the total turnover being
ITA Nos.637 &
645 to 647/Bang/10
Page 13 of 17
discount to customers while computing deduction ... leading to decrease in value of sales. Therefore, it is obvious that
the trade discount has to be reduced from the total turnover. Thus,
this
Officer noted
that the turnover of the assessee has increased, but the gross profit rate
and net profit rate has decreased. The assessee was asked ... profit rate of 8% may not be applied
on the total turnover. Consequently, the show cause notice stated that an
addition
appellant
has though decreased during the year but it is to be noted that the sales turnover
has increased substantially. In the given circumstances
turnover. Hence, any receipt or
expenditure although operating in nature but for which the corresponding
turnover of which is not the part of the turnover ... stand increased or decreased as the case may be but the
denominator will not reflect the inclusion of the corresponding turnover. In
fact, in Para
assessee also filed
the comparative statement showing increase / decrease in gross profit / loss and
percentage increase / decrease in gross profit / loss ... term of percentage of expenditure and turnover. The learned Counsel
for the assessee stated in the relevant year the percentage of expenditure is at
minus
turnover has increased from Rs.7.43 crores to Rs.11.15
crores which could be achieved only a competitive rates thereby
decreasing ... addition, I agree with the appellant that the
increase of turnover is due to non-disclosure of work-in-progress and no
other major defects
Assessing Officer
further found that the turnover relevant to financial year
2009-10 increased 42% as compared to turnover in financial
year 2006-07, whereas ... consumable stores increased only
by 12% and electricity consumption decreased by 10% in the
same period. The assessee made a detailed reply to the
apprehension
turnover of Rs. 15,31,53,579/- which is an extremely large
percentage.
(iii) No reasons have been given for decrease in freight
receipts this
written submission
about decrease in US dollar or its any effect on the G.P.rate, the
turnovers and GP rates of previous 2 years
