year under consideration despite the fact that the turnover of the
assessee has been decreased by'Rs.27,51,655/- [7.95] i.e. from ... said expenses is despite the fact
that the turnover has been decreased from Rs.3,46,11,057/- in
the last year
fall in the turnover by Rs.3.11 crores
which was a decrease of 42.52%,
5.1 Instead of appreciating the facts of the case ... fact a decrease in the expenses during
the year; but she failed to take into consideration the decrease in
the turnover as we!!. She repeatedly
observing that though
the turnover of the business has decreased from Rs.126.61 crores in
assessment year 2002-03 to Rs.106.38 crores
expenditure of wages with that of previous year and its corresponding
turnover. The A.O. had not pointed out any specific defect in the wages ... contrary to the finding of A.O.
the expenditure had decreased and the turnover has increased. It was
further submitted that the assessee has deducted
observed that the turnover has reduced as compared to the
preceding year i.e. it has decreased from 1.73 crores to Rs.1.22
crores ... comparison to the earlier year, but in the context of
the reduced turnover in the current year, the increased expenditure
partly explains the negative
ratio for the last three A.Ys is as under:
AY. Turnover G.P. rate N.P. rate
(Rs.)
G.P. (Rs.) G.P. rate ... turnover has exceeded by 3 times
compared to A. Y.2006-07. This is one of the reasons that when
turnover increases profit ratio decreases
Comparative G.P chart of
three years are as under:
A.Y. Turnover Gross Profit GP rate ... sale price of
the major items where sale realisation has been decreased
and purchase price has increase in comparison to last year.
He further stated
2009
11.25% of these expenses i.e. in .the ratio of the turnover of Unit-
IV withdrawn from Unit-111 are allocated to Unit ... Sales
2. Increase / Decrease Stock (10,709,117) -' (10,769,117) (5,485,820
3. Other income
Comparative G.P chart of
three years are as under:
A.Y. Turnover Gross Profit GP rate ... sale price of
the major items where sale realisation has been decreased
and purchase price has increase in comparison to last year.
He further stated
ratio with respect to the turn over of
the assessee
A.Y. Turnover GP margin NP margin ... over as well as gross profit margin and net profit margin has
decreased substantially during the year under consideration, the assessee
was asked to furnish
