justification of increase in this expense was found
acceptable while the turnover was decreased.
21.2 Submission made by Ld. Counsel for the assessee ... expenses incurred by the assessee
during the year even though the turnover has
decreased, but the increase in price is beyond the
23
Anant Steel
same direction and the same ratio in which the turnover
increases or decreases. The underline assumption of these disallowances is thus clearly erroneous
and wholly ... increase or decrease in the same ratio in which the turnover increases or decreases. I am
unable to approve this approach. In view of these
under these economic
conditions and background, there is a drop in the turnover of the assessee
as well as the GP. On the contrary, there ... compared to 2 preceding years, there is also a substantial decrease in
turnover as compared to the immediately preceding year. He held that
there
fixed assets specially plant & machinery.
Despite this fact your turnover has decreased then what use has
been put to new assets. The said query
which is slightly decreased
from previous year net profit of Rs. 5,14,19,208/- on total turnover of Rs.
89,71,37,753/- showing
2019
M/s. Devu tools Pvt Ltd., Mumbai.
-6-
Income Turnover 2008 2007 2006 2005 2004
Sales ... Decreases in Stock
Gross Profit Turnover
. Bogus purchases allowed 52.20% 48.48% 51.94% 35.52% 40.98%
As expenses
Net Profit/Turnover
Bogus purchases allowed
assessee,
which the department has not accepted as the actual turnover/sale was much more.
That, in fact, the Accountant of the assessee neither ... assessee that with the increase of turnover, generally the N.P rate is decreased.
The plea of the assessee has been that though the figure
turnover was abnormally high for the year under
consideration, sharp decrease in the turnover for F.Y. 2016-17 and also
sharp increase
Officer noted
that the turnover of the assessee has increased, but the gross profit rate
and net profit rate has decreased. The assessee was asked ... profit rate of 8% may not be applied
on the total turnover. Consequently, the show cause notice stated that an
addition
stated
that all decisions in official capacity in respect of increase and decrease in price
were taken by keeping in mind, various factors affecting ... case the Commission decides to levy a penalty, only the
relevant turnover generated by the sale of the products to dealers should be
considered
