last
three years, the AO observed that there was decrease in turnover during the year
but there was slight improvement ... last three years it is seen that there is decrease in turnover during the
year but there is slight improvement in GP and NP rate
fact that
the assessee has suppressed sale details by showing decreased
turnover.
[2] On the facts and in the circumstances of the case ... facts that assessee has
suppressed sales as well as by showing decreased turnover. We
observe from the records that case of the assessee was reopened
about 2.48% on a
turnover of about Rs. 18 crore and in the relevant year the turnover has
decreased to about Rs. 7.5 crores
which is substantial increase in the
turnover. Mere decrease in GP cannot be a ground for rejection
of books of accounts.
3.3 With regard
Ward 4(2), Jaipur vs. Bharat Metal Fabricators.
turnover has decreased as compare to the previous year, he restricted the
disallowance out of labour expenses ... looked at the labour cost as a percentage of turnover
which has declined from 11.18% to 6.06% during the year under consideration
and has restricted
price. Moreover with
respect to 43.27% of the turnover, no reasons have been
given for decrease in GP rate as compared to last year ... turnover. For
the balance part of the turnover where reasons have been
given, it is not possible to quantify the decrease in gross
profit
fictitious purchase effected in
the books would definitely decrease the profit or the turnover of the
assessee considerably. Therefore, for the purpose of estimating
rate of 6.76% on turnover of Rs 114,52,126 which is better than G.P rate of
6.06% on turnover ... trend which is emerging is that though the turnover of the
appellant has decreased during the year, it is able to report
since past several years, was not accepted since there was
decrease in the turnover of assessee company and also net profit before tax on
percentage
linked with the sales and with every increase / decrease in the
sale, such expenditure also increase / decrease e.g. Transportation, Hamali Wages ... there can`t be any situation
where despite there being huge turnover around Rs. 30 crore yet however, not a
single penny on account
