there is a substantial increase in the
turnover of the assessee, therefore, merely there is a decrease in the GP rate does
not warrant ... decrease
in the GP from 1.08% to 0.92% is not so significant having regard to the three-fold
increase in the turnover. Even otherwise
increase or short fall in the actual turnover would proportionately
increase or decrease the portion of cost to be absorbed by the group
company which
lakhs as compared to immediately
preceding year's turnover at Rs. 1,113.84 lakhs and gross profit at Rs.323.05
lakhs ... evidences such drastic decrease in
the gross result of the company. Firstly, the assessee submitted as under:
"Asst Year Turnover Gross Profit Net Margin
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
estimated the profit @ 11.5% on the turnover of Rs.
16.84 crore. The Hon'ble Bench has also considered its
order ... Assessee has claimed that with
the increase of turnover, profit rate is decreased. For
5 ITA 54 & 164/JP/2013_
Choudhary & Brothers
ACIT
change which not only resulted in decrease in the turnover by 15% but
also resulted into shrinking of the margins. Therefore, he prayed
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
reasons beyond the appellant's control, assessee's
turnover has also decreased by approx. 859.74 crore leading to slight decrease
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
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
