profit stood at Rs.7,19,928/-, being
0.99% of turnover.
Thus, while the turnover had increased by more than Rs.86 lakhs, the
gross ... average rate of
sale had consistently decreased, notwithstanding the higher turnover in
terms of volume.
4.5 In support of the above submissions, the learned
gone down only as a
percentage of the turnover which had increased, there was no decrease In
absolute terms. Without taking all these facts into
expenditure of wages with that of previous year and its corresponding
turnover. The A.O. had not pointed out any specific defect in the wages ... contrary to the finding of A.O.
the expenditure had decreased and the turnover has increased. It was
further submitted that the assessee has deducted
observed that the turnover has reduced as compared to the
preceding year i.e. it has decreased from 1.73 crores to Rs.1.22
crores ... comparison to the earlier year, but in the context of
the reduced turnover in the current year, the increased expenditure
partly explains the negative
years
the percentage of wages to turnover has been from 2.59% to 5% depending on the
total turnover. It is seen that in accounting year ... turnover of 5.28 crores which shows that in spite of
a huge increase in turnover the wages have actually decreased compared to the
last
that the increase in the expenses under this head is 30.73%. The
turnover of the appellant has increased from Rs. 4.29 crores ... matter of fact, the
increase/decrease of the expenses as well as turnover does not take place in a
mechanical manner since various factors result
correspondence
expenses has not decreased. The assessing officer has worked out the
increase in expenses to 191% and decrease in the turn over ... this regard, the assessee has explained that the
turnover of the assessee has been decreased from 92 crore to 29 crore,
however, fixed nature
year under
consideration the gross turnover of the assessee has been reduced to Rs.
629.82 lacs compared to gross turnover of 863.12 lacs to preceding ... lacs to Rs. 20.73 lacs in spite of decrease in the turnover of the asssessee.
Therefore, the assessing officer has asked the assesse to justify
turn over
shown during the year under consideration with the total turnover shown in
the preceding assessment year. The assessing officer observed that during ... compared
to the preceding assessment year. There was decrease in the total turnover at
Rs. 26,73,92,917/- as against the total turnover
year-wise detail of investments in shares,
reserve and surplus, business turnover, other income and net profit
from financial year 2002-03 to financial year ... crores in FY 2005-06; whereas business turnover has drastically
decreased from Rs.3 crores in FY 2002-03 to Rs.0.64 crores
