justified, as the turnover of assessee has increased decreasing the profit margin.
Having considered facts and circumstances of the case I find that the assessee
turnover, gross profit
& its % for three previous years along with reasons
for fall/fluctuation in GP/ GP Rate, including
justification for increase/ decrease ... Return filed with
VAT Deptt. If there is any difference in the turnover VAT Return for Sales filed 491-591
reported
earned turnover of
113 crores and 11 crores respectively. The comparables selected
by the Ld.TPO do not satisfy the upper limit of turnover filter ... limit on the turnover while selecting the companies
comparable to the assessee. In this regard, it is submitted that
application of turnover filter
assessee is seeking exclusion of 10
comparables by applying turnover filter. She submitted that this
ground may be read with additional ground ... turnover/service revenue while selecting the
companies comparable to the assessee. In this regard, it is
submitted that application of turnover filter is a relevant
from its
investments in developing the value of a trademark from its turnover and market share
where it has a long-term contract of sole distribution ... additional return
from the owner of the trademark, perhaps through a decrease in the purchase price of
the product or a reduction in royalty rate
M/S. Acer India Pvt Ltd, Bengaluru vs Assistant Commissioner Of Income Tax, ... on 31
lower level of
the turnover and he has not fixed the upper turnover filter
limit looking to the turnover of the assessee. In this
regard ... submitted that application of turnover filter is
a relevant criterion in choosing comparable companies.
The difference in the scale of operations has a direct
impact
bench will kindly appreciate that there is no difference between the
turnover as per RVAT returns/assessment order and the books of
accounts ... assessee as per his books of accounts duly tallies with the
turnover assessed by the VAT authorities of state Govt.
12. That as regards adverse
Turnover 449839568 580941333 451016448
(iv) Cash Sales Ratio, 70.82% 73.74% 51.36%
Cash Sales/Turnover
(v) Cash deposit ratio cash 82.73% 82.23% 63.64%
deposit/turnover
From ... tabulated data it can be seen that
ratio of cash sales to turnover has not increased
significantly. There is a mere increase of 3% which
higher compared to the preceding years
and due to increase in the turnover, the semi-variable expenses increase
gradually and there is slight difference between ... assessee. Therefore, the saving
in semi-variable expenses will compensate the decrease/increase in the
profit which is very much less in percentage as noted
