expenses cannot have an element of turnover. He also
emphasized that for a receipt to be called as turnover, there should be an
element ... assessee in either of the units to either decrease the total turnover or
increase the profits of the business, thereby discharging the claim for
deduction
clear that the assessee's turnover is continuously
going down. The closing stock is also decreasing in the year 2006-07 and there
phase of this company either in terms of turnover or
operating profit margin. Whereas its turnover for the financial year
2004-05 stood ... fact, in sync with the
increase and decrease of the assessee's turnover and profitability in the
earlier two years
admitted a net
income of Rs.14,44,347 at 0.29% of turnover. However,
the net profit admitted ... theao, if
there is increase in the turnover in the subsequent year,
the ratio of profit would decrease. With the introduction
of new plant
Gross Turnover 650.28 598.49 525.45 412.14
Expenses as %
of Gross
Turnover Percentage ( % )
Payment to and
Provisions for
Employees 6.66 6.58 6.42 10.30
Travelling,
Conveyance ... These figures demonstrate that the expenses on Employees cost has
shown decrease from 10.30% in year 2005-06 (i.e. the year in which
outsourcing
Learned AR
has also argued that due to substantial increase in turnover there was
a slight deduction in the profit margin which was offered ... both the sides, we are also of
the view that the marginal decrease in the gross profit ratio was
properly explained by the assessee; hence
assessee has declared following trading results in the
earlier years.
A.Y Turnover Gross Profit GP Rate ... increase in turnover
6
has been achieved by reducing the sale rate of goods sold and margin of
profits thereon. Small decrease
that the turnover has increased from 48307984 to 83991597.
4
ITA NO. 380/Del/2012
However, the gross profit ratio has decreased from
rate has decreased from 22.45% in the previous
assessment year to 13.89% during this assessment year.
However, the turnover has increased from Rs. 1.64 crores
explained that fall
in gross profit was attributed to the increase in turnover
from Rs. 6.40 crores to Rs. 9.57 crores. Hence, the gross
profit ... year which was earned on a meager turnover of
Rs. 1.04 crores whereas in this year the turnover has increased from
Rs. 1.04 crores
