audited report which is as
under:
S.N A.Y. Turnover Gross Ratio Net profit Ratio
Profit ... Display charges 42595478.00 34760360.00
3 Sales Promotion 39292300.00 7781071.00
Exp.
4. Turnover 11628300.00 12116550.00
Discount
Total : 99042300.00 65523121.00
Percentage of 20.72% 20.90%
total Sales
Promotion
Company, Jhunjhunu
Comparative % of Contract Expenses
Financial Year Turnover Contract % of contract
Expenses expense as to
turnover ... percentage of such expenses as proportion to
the total receipt has decreased from 89.95% to 89.25%.
However, keeping in view the fact that the books
proportion of export
turnover of the eligible services to the total turnover of the business
carried on by the assessee. It is significant to note ... present case of appellant, such gains were reduced from
the export turnover but not from the profit / business income of the
eligible unit
that out of 11 comparable companies chosen by the TPO, the turnover
of Infosys Ltd., L&T, Mindtree Ltd., Persistent Systems Ltd., Sasken
Communication ... assessee with the
following observations:-
"10.65 Turnover Filter: The TPO had applied the turnover
filter with Rs. 1 crore at the lower
Consequently, the (exempted) profit of the EOU unit would
decrease and the profit of the DTA unit in Mumbai would
increase ... submitted
that the assessee has proposed NP rate on turnover of Rs. 27,64,85,664/-
and the ld Assessing Officer has applied the same
decrease in the net profit rate as compared
to the preceding year are general in nature viz due to
increase in turnover, execution of work
volume of business and therefore the margins of the assessee had
decreased. The Ld. AR submitted that net profit rate of 4.45% was
declared ... appraisal of value of the contract, the Ld. AR submitted that the turnover
during the year had increased to Rs.11.18 crore as against
computed by Ld. AO/TPO on
account of treatment of
decrease in stock as non-
operating in nature.
It was submitted that after incorporating correct ... certain filters like some companies are with
abnormally high margin and high turnover.
10 ITA no. 1153/Del/2014
(Element K India
years with the current year
and found that there is a sharp decrease in the profitability of the assessee
company, which ... assessee before the lower authorities. It
also produced a chart showing the turnover and gross profit and net profit
of the assessee. With respect
various reasons such as
Increase in the raw material cost, decrease in market price of
finished product......
6.4 Looking into the facts of the case ... record anything to the
contrary. Further, it is also noted that the turnover of the
appellant increased substantially in comparison to preceding two
years. Moreover
