that
in the earlier years the turnover was very high, but subsequently
the turnover has decreased drastically and therefore, fixed cost
could not be reduced ... fact on record to pin point that fixed expenditure coupled with
decreased turnover has led to decrease in profit.
5
M/s. S.K. Jain
compared to immediate previous assessment year whereas, the turnover of the
assessee decreased from Rs. 42.44 crore to 34.79 core. The AO also found that ... stock was shown
at Nil. The AO furthered found the turnover of the assessee decreased and similarly
the GP ratio of the assessee also decreased
that it is offering to tax is very low. Further, the turnover has
decreased by more than 5 times from
than this year and this year there is decrease in
7 ITA No.724/Chny/2018
turnover. According to him, the CIT(A) as well
same with
the previous years' datas like increase and decrease in
turnover/profits/loans/fixed assets/capital, low profit
rates, vis-a-vis high
rupee in well
known.
b) During the year under reference, turnover has decreased by 15% due to decrease in
production/manufactured goods as under
comparison with earlier assessment year, but
such decrease is mainly due to decrease in turnover of the appellant company.
The appellant has not proved that
rate
was prejudicially decrease in the present year but the turnover has increased
and therefore, the same was rightly accepted by the CIT(A). Hence
operating assets) but at a
decreasing rate. Hence, it is appropriate to apply upper turnover
filter based on the classification of companies
could not be rejected solely for
the reason that despite decrease in its turnover the expenses had more or
less remained static. Also the assessee
