Circle- 3 Jaipur
.
2.11 As regards the GP rate application on regular turnover, hat the
assessee is maintaining all the books of accounts including cash ... JCIT (OSD), Central Circle- 3 Jaipur
.
knowledge that increase turnover is achieved with decrease
in margin of profit. Hence the GP rate
estimation of turnover and income thereon. We find
that the Assessing Officer has estimated a net profit @ 1% on the estimated
turnover on 1.5 crore ... nature and will not vary with the
increase or decrease of the turnover and therefore gross profit rate inspite of
net profit rate should have
actions. We find that the ld CITA had
categorically stated that the turnover and the direct expenses incurred by the assessee
8 ITA No.2318 ... consumption to the percentage of turnover had increased by 34.95% and direct
expenses had decreased by 0.89% in the year ended 31.3.2009 when compared
estimated the profit @ 11.5% on the turnover of Rs.
16.84 crore. The Hon'ble Bench has also considered its
order ... Assessee has claimed that with
the increase of turnover, profit rate is decreased. For
5 ITA 54 & 164/JP/2013_
Choudhary & Brothers
huge amount of damage cannot
be allowed when the increase in the turnover is only marginal.
12. On this aspect the ld. CIT(A) observed ... transit is nothing to do with the increase or decrease in the turnover and
at the same time, it may not have any impact
ACIT
change which not only resulted in decrease in the turnover by 15% but
also resulted into shrinking of the margins. Therefore, he prayed
year
under reference is on higher side whereas total turnover has been
decreased to 90% from last year. (Last year turnover
year-wise detail of investments in shares,
reserve and surplus, business turnover, other income and net profit
from financial year 2002-03 to financial year ... crores in FY 2005-06; whereas business turnover has drastically
decreased from Rs.3 crores in FY 2002-03 to Rs.0.64 crores
preceding year but there is decrease
in the turnover and therefore, this is the objection of learned CIT that the
overall turnover shown
from page-1 of the
assessment order itself. The assessee declared total
turnover of Rs.5,69,89,515/- resulting into gross profit ... assessee explained that the
decrease was due to increase in the turnover. However, the
ld. Assessing Officer estimated the gross profit at 30%
which resulted
