been able to explain
as to why the sales price has decreased. The turnover in A.Ys.2005-06,
2006-07 and in the current ... considering the overall fall in GP rate and the fact that decrease in sale
price is totally unexplained, the addition made
turnover is only 60% of
the last year. In the last year the turnover was Rs.16.72 crores whereas the
turnover in the current ... increased 3.5 times as
compared to last year, whereas the turnover has decrease to 60% of the last
year.
3.3.2 In view of this reason
year under consideration
gross loss is shown at 28.27% of the turnover whereas in the immediately
preceding year, GP was shown at 13.64%. Thus, there ... sought to explain the fall on the ground that the
turnover has substantially decreased this year. Last year the turnover
paid to customers for shortage
claims from export turnover, we find that this issue is covered in favour of
the assessee by the Tribunal decision ... increases the cost of the export, but it does not
decrease the export turnover. Hence, respectfully following the decision of
the Tribunal cited supra
assessment order, the assessing officer
has picked up 4 cases where the turnover has ranged from Rs.8.13
crores to Rs.23.62 crores ... There is a
trend of decrease in G.P. as turnover goes up. Thus the fair
estimation of G.P. in the present case would
gone down only as a
percentage of the turnover which had increased, there was no decrease In
absolute terms. Without taking all these facts into
total turnover of Rs.6,15,15,472/-. The
Assessing Officer produced following chart for comparison:-
Year Turnover Gross Profit G.P. margin ... consumption was at Rs.85,89,851/-. Total turnover on the
other hand had decreased. The AO required the assessee to give details
there was increase in manufacturing expenses by
1.92% whereas there was a decrease of cost of goods sold by 1.41%
and thus there ... this year and production of last year but the turnover has
been decreased substantially which has been stated because of fall in
selling rate
During the assessment proceedings the AO found that the
turnover of the assessee has decreased as compared to the
preceding year, however, indirect expenses were ... found that expenses
incurred in the preceding assessment year were 2.89% on turnover
but in the assessment year under appeal
fact that the turnover of the
assessee in year under consideration has not increased as compared to last
year but has decreased
