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
explain the decrease in the net profit, the assessee submitted that the same was
due to fall in the turnover and increased input costs ... that there was decline in the net profit rate
due to decreased turnover cannot be accepted. I find that the AO after considering the reasons
ground that the increase in salary is
manyfold, but there is decrease in turnover during the year. On appeal the Ld.
CIT (Appeals) deleted ... during this year when compared to the last year, however, there is
decrease in profits. He also observed that there was no explanation from
expenses reimbursed by
the Company were reasonable to the turnover of the Company
and decreased over the period of time. -The statement of shared
service ... expenses reimbursed by
the Company were reasonable to the turnover of the Company
and decreased over the period of time. The statement of shared
service
provided for
Commission rate in case of GSA agreements generally
decreases as the turnover increases This is because the cost
incurred by the agent does ... that the commission rate in case
of GSA agreements generally decreases when the turnover
increases and this is because the cost incurred by the agent
Further, inclusion of turnover of Koramangala unit in
total turnover will decrease the deduction u/s. 80 HHC. Effect of both
these factors will decrease
despite
the steep decrease in turnover of the assessee. Accordingly, he
disallowed the difference of Rs 61,15,842/- ( 20051950 - 13936108) in
the assessment
certificate of the machinery was provided to
the AO. There was decrease in turnover from 2.19 crores to 1. 48 crores which
further suggested that
same is as under:
1. Turnover of sales during F.Y. 2016-17 of the first three
month was decreased due to strike by jewelers ... there
is increase in total turnover by Rs. 23.04 Cr (increased by
39%) and out of the total turnover
Ess Ismail Merchant, Mumbai vs Jt Cit 13(3), Mumbai on 21 February, 2018
IN
