under:
4
" 3.2 Regarding decrease in the gross profit and net profit though increase in
gross turnover as compared to the previous year ... compared to FY 2010-11. In reply to cause of decrease in net profit the
assessee submitted that it was mainly on account of provision
such a
payment as excessive in view of decrease in the ratio of net profit to turnover.
He restricted the deduction to the amount
loss is in respect of current year's turnover or earlier year's
turnover. Since there is no finding of authorities below ... same is
related to turnover of earlier year then the same should be ignored because in
that situation, the corresponding turnover is not forming part
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
various years is as under:-
AY Travelling & Turnover Expenditure as
Conveyance (Rs. in % of Turnover
Expenses (Rs. in crores)
crores ... evident that the amount of expenditure on
travelling and conveyance expenses has decreased since AY 2006-07
and continuously on downward trend. Therefore, considering
basis of their turnover of the units. Hence, deduction
u/s.80IA of the Act was consequently decreased and disallowed by the
same amount
excluding export turnover amounting to
Rs.81,39,65,243/- in respect of export oriented unit (EOU) from export turnover of
the appellant while calculating ... facts while confirming the
decision of assessing officer for decreasing profits exempted under section 10B of
the EOU's in as much
excluding export turnover amounting to
Rs.81,39,65,243/- in respect of export oriented unit (EOU) from export turnover of
the appellant while calculating ... facts while confirming the
decision of assessing officer for decreasing profits exempted under section 10B of
the EOU's in as much
sale of
licensed products and was directly linked with the amount of
turnover.
29. Before us, Ld. Counsel relied upon catena of judgment wherein
similar ... would determine the extent of royalty to be paid and it
would decrease or increase every year depending upon the
decrease or increase
thus made. The
ld. CIT(A) decreased the net profit to 3%, reducing the addition to Rs.3,45,230/-.
The assessee is in appeal ... page 4 of the impugned order, is as under:
A.Y. Turnover NP Rate
