Assessing Officer the
assessee has not given any reply for decrease in turnover.
9
According to Assessing Officer perusal of documents raise
following important issues ... filed before the
Assessing Officer. It was particularly explained that turnover
11
has decreased because there was some family dispute and out
of two units
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
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
furnish any justification of these
expenses whereas the turnover of the assessee had decreased in comparison to
the last year. The AR during arguments before ... obstructed for a long
time, therefore, there was a decrease in the turnover of the assessee in
comparison to the previous year and the cause
ratio of the assessee was decreasing due to steep increase in the labour
charges and increase in the turnover, and the AO applied ... case it is noticed that the
turnover of the assessee was increasing year after year but there was decrease in
the net profit rate consistently
income is
assessed at the rate of 3% of the sales turnover of the current year in the light of
book profit declared ... last year. It is commonly observed that when turnover is
increased the profit margin is generally decreased. The assessed income of the
assessee
admitted fact that there was a tremendous increase in the
turnover of the assessee which increased from Rs. 5 Crore in the earlier
year ... earlier year, the increase in
the turnover may be a reason for slight decrease in the gross profit rate.
In the present case, the Assessing
turnover of Rs. 3,90,72,000 by adopting a rate of 12.5%
profit on turnover. The turnover ... adoption of the turnover and given part relief to the
assessee firm by decreasing the percentage of profit from
12.5% to 6% on the turnover
rate at 5% on the total turnover by
keeping in view that there was slight increase in the turnover of the
assessee. Now the assessee ... that the decrease in the net profit rate in
comparison to the preceding year was on account of increase in the
turnover. It was further
Jivraj Tea Ltd., Surat vs Department Of Income Tax on 28 August, 2014
आयकर अपील
