noticed that
there is substantial increase of expenses though the turnover has decreased.
Further, the AO noticed various discrepancies in the audit report accompanying ... below and submitted that during the year under consideration there was
decrease in turnover and increase in salary & wages and the explanation thereof
account
of alleged reduction in net profit inspite of substantial
decreased turnover by invoking the provisions
Franco-Indian Pharmaceuticals Pvt. Ltd. and since there was
decrease in turnover in the current financial year, the claim of expenditure incurred on
account
same with
the previous years' datas like increase and decrease in
turnover/profits/loans/fixed assets/capital, low profit
rates, vis-a-vis high
compared to last year's gross profit of 1.60% on a turnover
of Rs.873.41 lakhs. The Ld. AR of the appellant though ... last year. It is well established that with the increase of turnover, profit decreases.
Thus, A,O's decision of application of last year
Percentage increase is 138.
(ii) Decrease in turnover over the preceding year's : Rs.1,94,80,818/- percentage
decrease is 11.7
(iii) Number ... produced for
verification.
(vi) Decrease in freight receipt over the preceding year's : Rs.1,62,558/- percentage
decrease is 2.9.
On analysis
actions. We find that the ld CITA had
categorically stated that the turnover and the direct expenses incurred by the assessee
8 ITA No.2318 ... consumption to the percentage of turnover had increased by 34.95% and direct
expenses had decreased by 0.89% in the year ended 31.3.2009 when compared
huge amount of damage cannot
be allowed when the increase in the turnover is only marginal.
12. On this aspect the ld. CIT(A) observed ... transit is nothing to do with the increase or decrease in the turnover and
at the same time, it may not have any impact
Authorised representative objected to same again by pointing to decreasing
proportion of transportation charges to turnover. This is rejected since the nature of
work, manner
indicated that the net profit of assessee was decreased from
.23% of total turnover to .13% in this year due to increase in this expense
