rate chart submitted by the appellant, it is seen
that the turnover has decreased from Rs. 3,53,30,516/- in the
immediately preceding assessment ... merely using her estimations and
observing that since the turnover has decreased the profit was required
to be increased.
He also submitted that
view the fact that
the expenditure has doubled, however, the turnover has decreased, the
Assessing Officer made disallowance of 5% on this amount being ... 2013
charges has doubled and the turnover has decreased, is factually incorrect.
In the assessment year 2008-09, these expenses were debited under two
heads
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 payment of commission must
increase the turnover and in the decreasing turnover no sales
commission can be paid.
8. The ld. DR vehemently supported ... family
members which could not be justified because of decreasing turnover
as well as the fact that out of 6 family members, 3 are ladies
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
purposes. As is made clear that Business loss by way of decreased turnover owing to absence of second Computer-(Rs. 50,000/-) relates
noticed that
there is substantial increase of expenses though the turnover has decreased.
Further, the AO noticed various discrepancies in the audit report accompanying ... below and submitted that during the year under consideration there was
decrease in turnover and increase in salary & wages and the explanation thereof
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
account
of alleged reduction in net profit inspite of substantial
decreased turnover by invoking the provisions
years of the appellant shows that turnover in the current
year is similar to turnover in the assessment year 2009-10 and in that
year ... DCIT, Jaipur
similar turnover the N.P. was 2.30%. Further, the expenditure has
increased even when the turnover has decreased. The Authorized
Representative
