rejected
as low G.P. was due to increase in turnover and for the stock
valuation, it was stated that books have been audited ... pointed out
various defects in the books of accounts viz. decrease in
gross profit rate as compared to earlier years associated with
non-maintenance
been
Rs.37,08,700/- on a enquired into and examined
turnover of Rs.3,16,47,667/- by the A.O. during the
which ... Debit Notes" from M/s.
turnover of Rs.3,38,03,515/- Nirma Limited has not been
(i.e., @ 10.80%). The A.O. examined
that out of 11 comparable companies chosen by the TPO, the turnover
of Infosys Ltd., L&T, Mindtree Ltd., Persistent Systems Ltd., Sasken
Communication ... assessee with the
following observations:-
"10.65 Turnover Filter: The TPO had applied the turnover
filter with Rs. 1 crore at the lower
turnover after rejecting the book results. He further held that there was enough
justification for enhancing the net profit from 0.46% to 2.5% on turnover ... year under consideration, the turnover for the last 2-3 year was more
or less same as the turnover for the year under consideration
ITAT at Pg 19, Pr. 3.9 w.r.t. the stock turnover
ratio of earlier years to ascertain the disclosed stock this
year, observed that ... chart prepared
by them computed increase of 5.34% in turnover as against
the correct 534%. This mistake has a direct and visible
impact
decreased expenses of STP unit and increased
expenses of non-STP unit. The AO proceeded by allocating the expenses
on the basis of turnover
higher side when compared to
the turnover of the last year vis-à-vis turnover of the year
under consideration which was drastically lower ... shown by the assessee in the P & L account
as decrease in stock as noted by the A.O. himself, he
presumed that
presumed that in case the turnover of any business goes up, the GP
always goes down and if the turnover goes down the GP will ... down substantially. Even if we
consider the reply of the AR regarding decrease in GP rate, it would not
be justified if we calculate
Prime Export vs. ITO, Jaipur .
assessee had achieved the increased turnover by reducing the sale price or
providing discount etc. The increase in cost ... fall in GP is on
account of decrease in export incentive during the year as compared to last
5
ITA No. 654/JP/2012
expenses for wages and salaries
have increased in Unit-I but decreased in Unit-II though the process of
manufacturing according to him was almost ... taxable profits. He
accordingly re-allocated the expenses in proportion of turnover and re-
worked the net profits from Unit-I and Unit-II. Aggrieved
