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
further
argued that the sales turnover had increased by 14.18% but the
manufacturing sales had in fact decreased by 4.94% as the appellant had
begun
which is 80% of turnover which is practically
impossible in such business. Assessee's income has decreased in the
subsequent years and deduction
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
details have been
filed and during the year, manufacturing and sales have decreased but the
expenses on repairs to plant & machinery, building and others ... direct
correlation with the increase or decrease in sales and therefore, merely on
this basis that the turnover has gone down, the repairing expenses cannot
consumption of raw material is more the gross profit ratio
would decrease. But in the case of the assessee the results are
reverse when ... presumed that in
case the .turnover of any business goes up, the GP always goes
down and if the turnover goes down the GP will
place of
15.82% declared by assessee on the gross turnover of
Rs.1,69,62,197/-. Accordingly addition of Rs.7,09,229/- was made ... deleted on the basis of
observation that there was no substantial decrease in GP vis-à-vis
average of last three years GP calculated
turnover was Rs.106,66,34,514/-.
The G.P. was 0.51% and net profit was at 0.02% whereas the assessee
declared his turnover ... immediate preceding year. The AO asked the assessee for the
reasons for decrease in profit margin rate. The assessee could not offer any
satisfactory explanation
place of
15.82% declared by assessee on the gross turnover of
Rs.1,69,62,197/-. Accordingly addition of Rs.7,09,229/- was made ... deleted on the basis of
observation that there was no substantial decrease in GP vis-à-vis
average of last three years GP calculated
