assessment year 2001-02 was 0.56% of the domestic turnover but
decreased to 0.42% in the assessment year ... partly correct as the turnover is also reflected and forms part of the
corpus which is calculated @ 0.39% of the turnover. The vehicles sold
were
year under consideration despite the fact that the turnover of the
assessee has been decreased by'Rs.27,51,655/- [7.95] i.e. from ... said expenses is despite the fact
that the turnover has been decreased from Rs.3,46,11,057/- in
the last year
fall in the turnover by Rs.3.11 crores
which was a decrease of 42.52%,
5.1 Instead of appreciating the facts of the case ... fact a decrease in the expenses during
the year; but she failed to take into consideration the decrease in
the turnover as we!!. She repeatedly
mainly on the
basis of presumption. He has also considered the decrease in turnover and lower
net profit ratio of 1.52% as compared
observing that though
the turnover of the business has decreased from Rs.126.61 crores in
assessment year 2002-03 to Rs.106.38 crores
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
ratio for the last three A.Ys is as under:
AY. Turnover G.P. rate N.P. rate
(Rs.)
G.P. (Rs.) G.P. rate ... turnover has exceeded by 3 times
compared to A. Y.2006-07. This is one of the reasons that when
turnover increases profit ratio decreases
income. In case
of low turnover, net profit margin is higher. However, when business volume or
turnover increases profit margins record reduction because in such ... charging less net profit margins. When volume or
turnover progressively increases then net profit rate decreases. This is an universally
known commercial truth
income. In case
of low turnover, net profit margin is higher. However, when business volume or
turnover increases profit margins record reduction because in such ... charging less net profit margins. When volume or
turnover progressively increases then net profit rate decreases. This is an universally
known commercial truth
