resulted into
over-statement of GP during such year with the
corresponding decrease in the year under consideration. If
such error would not have crept ... Under (A.Y. 2006-
Consideration] 07)
1 Turnover 725.19 684.71
2 Gross Profit (as per books) 198.19 356.06
3 Value of scrap related
Company, Jhunjhunu
Comparative % of Contract Expenses
Financial Year Turnover Contract % of contract
Expenses expense as to
turnover ... percentage of such expenses as proportion to
the total receipt has decreased from 89.95% to 89.25%.
However, keeping in view the fact that the books
Consequently, the (exempted) profit of the EOU unit would
decrease and the profit of the DTA unit in Mumbai would
increase ... submitted
that the assessee has proposed NP rate on turnover of Rs. 27,64,85,664/-
and the ld Assessing Officer has applied the same
Dollar and
Pound Sterling and because of these adverse conditions, the turnover had fallen
down by almost Rs.5 crore. It was submitted that ... thus, GP rate was
lower because of increase in purchase cost and decrease in sale price.
Necessary books of account along with vouchers, bills
decrease in the net profit rate as compared
to the preceding year are general in nature viz due to
increase in turnover, execution of work
logic. The A.O. has lost
sight of the fact that the turnover of the appellant company has increased
multifold and by this logic also ... increased by 0.79%) during the year under
consideration. Had there been any decrease or loss resultant to the
increase of consumption, it would have been
various reasons such as
Increase in the raw material cost, decrease in market price of
finished product......
6.4 Looking into the facts of the case ... record anything to the
contrary. Further, it is also noted that the turnover of the
appellant increased substantially in comparison to preceding two
years. Moreover
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
gross profit rate because there has been very
substantive increase of turnover from about 1.03 crores in the
preceding year to about 1.96 crores ... turnover of about Rs.1.96 crores compared to Rs.3,96,875/-
on a turnover of Rs.1.03 crores in the preceding year
restricting the addition of gross profit at 9% on turnover as against 9.5%
made by the AO. The assessee is in appeal challenging the order ... sores and spares by 1.07%, increase in
labour charges by 0.99% and decrease in job charges per meter. The AO
did not accept the explanation
