proceeds
from the scrap should have been included in the "total
turnover" as the respondent - assessee was also selling
scrap and that ... that if the total turnover
increases, the advantage which the assessee would get
under Section 80HHC would decrease because the
amount deductible substantially depends upon
could not be rejected solely for
the reason that despite decrease in its turnover the expenses had more or
less remained static. Also the assessee
account.
The AO observed that while the decrease in the turnover was
18.82%, the gross profit has fallen down to 46.69% which is
not justifiable
fixing GP% at 7% by taking cue from the part of
turnover (of earlier part of the year) of 5.1% is not sustainable ... years, including relevant financial year) is as under:-
Total Turnover 250758982 736968737 2595778118
Increase/Decrease in -59959722 50871881 23178182
Stock
Total 190799260 787840618 2618956300
Expenses
turnover,
therefore, no addition can be made without any adverse material / evidence
available on record. It is further submitted that assessee's turnover ... fact that due to worldwide recession the price had fallen coupled with decrease
in the exchange rate of US Dollars which has also affected
against 91 % in the immediately preceding year. Thus, there appeared an abnormal
decrease in the yield of finished products during the year under consideration ... copper scrap in the lesser turnover where as in the current year
on the increased turnover it has purchased lower copper scrap of 11.65 lakh
observed that the turnover for the year under consideration
has increased from the previous years, however the GP rate
has decreased from the preceding previous ... further submitted that in normal
circumstances GP rate is inversely related to turnover, i.e. increase in
turnover usually results in lower GP rate
last year. In appellate proceedings AR has not
filed proper justification for decrease in G.P. rate to 4.64% however I find that
GP rate ... higher side, GP rate of 20% of declared
turnover is applied. Assessee gets resultant relief. This ground of appeal is
partly allowed."
Ground
alone ought to be considered, as the company fails the upper
turnover filter for FYs 2013-14 and 2014-15. (Ground No. 4.6 and
Additional ... 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
required to file monthly, quarterly or
annual returns of his turnover. It is the choice of a dealer to opt for compounded
payment ... contract under a scheme, in which the State
Government can increase or decrease the rate of compounding of tax. It is an
invitation to offer
