Comparative G.P chart of
three years are as under:
A.Y. Turnover Gross Profit GP rate ... sale price of
the major items where sale realisation has been decreased
and purchase price has increase in comparison to last year.
He further stated
from
Rs.6.07 to Rs.7.55 which also led to decrease in the gross profit. These are the
valid reasons given ... year, now the revised G.P. of 13% is applied on the turnover of Rs.54,37,97,545/-
for the year under consideration. Thus
report - Annexure -I, Part-A, clearly shows that the Gross Profit is decreased
by 3.15% compared to the immediate preceding year. If the said debit ... Annexure - I, Part-A, during the year assessee has shown total turnover of
Rs.72,00,347/- and G.P. shown
decreased from 22.60% of
the immediately preceding assessment year to 14.39% during the relevant
period, and the AO has added only 2% of the turnover
that the main reason for decrease in gross profit ratio was
because of higher cost of purchase and decrease in sale price ... assessee and estimated the gross
profit at 5% of the turnover and made the addition on this account.
The addition was challenged before the learned
although turnover
has increased by almost 3 times there is a marginal fall of 2% in gross
profit. However when the current year is seen ... turnover has
increased only 2 ½ times the G.P has fallen by more than 50%. So the
historical data of profit in appellant
turnover of Rs.6,01,58,624/-, whereas total
deposits in bank were amounting to Rs.749,28,900/-. After considering the increase
and decrease
increase in prices of
raw material, increase in the cost of manufacturing, decrease in sale price
etc. He has cited a number of decisions ... coke by declaring the GP rate of
16.83% on increased sales turnover of Rs.481 lakhs as against the GP rate
of 9.43% on sales
shown gross profit of Rs. 30,79,39,271/- on a total
turnover of Rs. 88,26,50,481/- which comes ... year, the assessee
has shown gross profit of Rs. 39.88% on total turnover of Rs.
36,49,45,351/-. The A.O. found that there
addition on the ground that during the
year Gross profit has decreased in percentage of last year. In the
last year the gross profit ... year under consideration the gross profit disclosed at
1.97% on total turnover of Rs.89,25,210/-. Therefore, the A.O.
found that there were
