account of sale of scrap @
0.2% of the turnover. This aspect we have already dealt
with while dealing with the appeal for the year ... because of
rice in turnover, without producing any material that profit
margin on sales had decreased during the year. Though,
there is no evidence regarding
rate at 5% on the total turnover by
keeping in view that there was slight increase in the turnover of the
assessee. Now the assessee ... that the decrease in the net profit rate in
comparison to the preceding year was on account of increase in the
turnover. It was further
Wipro
Ltd. The learned Counsel pointed out that the segmental turnover of
Infosys was at Rs.156,48,00,00,000/- and that of Wipro ... risk taking capabilities
in cases of high turnover companies, which increase
the margins with rise in turnover. However, in the
6
Tribunal decisions cited
turnover of
Rs.17,36,68,915/- as compared to Net Profit of Rs.71,30,820/- at the rate
of 5% on the turnover ... Profit. It was found by Assessing Officer that security charges have been
decreased from 92.78% shown in the last year to 91.5% during the year
Assessing Officer
further found that the turnover relevant to financial year
2009-10 increased 42% as compared to turnover in financial
year 2006-07, whereas ... consumable stores increased only
by 12% and electricity consumption decreased by 10% in the
same period. The assessee made a detailed reply to the
apprehension
that the turnover has increased from 48307984 to 83991597.
4
ITA NO. 380/Del/2012
However, the gross profit ratio has decreased from
rate has decreased from 22.45% in the previous
assessment year to 13.89% during this assessment year.
However, the turnover has increased from Rs. 1.64 crores
basis of turnover. Reliance
has been placed on some decisions of the Tribunal in support of the plea for
applying turnover filter for selection ... risk taking capabilities in cases of high
turnover companies, which increase the margins with rise in turnover.
However, in the Tribunal decisions cited, no detailed
explained that fall
in gross profit was attributed to the increase in turnover
from Rs. 6.40 crores to Rs. 9.57 crores. Hence, the gross
profit ... year which was earned on a meager turnover of
Rs. 1.04 crores whereas in this year the turnover has increased from
Rs. 1.04 crores
erred in not allowing adjustments on account of the
increase and decrease of capital in the relevant
chargeable accounting period. The assessee added
that ... worked out by the
application of a rate to the turnover. I am, thus,
unable to allow this contention."
Aggrieved, the assessee carried appeals
