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
arises how to determine the profit element. For this purpose, the
total turnover and percentage of gross profit for the earlier 3 years was
obtained ... gross profit rate was also
decreasing every year and in the year under consideration it has decreased to
3%. It is also an established fact
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
years it is 46.9% and 39.75%
respectively. Before AO, assesee explained the decrease in GP that
buyers are demanding discount due to recession as well ... makes major sales. However, AO rejected the
reason and stated that the turnover of the assessee has increased due
to opening of three new shops
will
indicate that the company has been consistently growing in
terms of turnover as well as the profit margins. The earnings
before the interest ... immediately preceding year. Further, the staff expenses have
only marginally decreased from 8.45% to 8.14% of the total
cost as compared to the earlier year
shown gross profit of Rs. 30,79,39,271/- on a total
turnover of Rs. 88,26,50,481/- which comes ... year, the assessee
has shown gross profit of Rs. 39.88% on total turnover of Rs.
36,49,45,351/-. The A.O. found that there
which are reproduced as under.
Asstt. Year Turnover Gross Profit G.P. Rate N.P. Rate ... been reproduced b) the AO as under:-
Saharanpur Head Office:
Asstt. Year Turnover Gross Profit G.P. Rate N.P. Rate
Tesco Hindustan Service Centre Private ... vs Dcit, Bangalore on 9 December, 2016
IN THE INCOME
Dcit 1(3), Mumbai vs Syngenta India Ltd, Pune on 30 November, 2016
आयकर अपीलीय
profit 7883640 17530088.41 20905089.81 24268511.48
Gross profit % 14.23 % 14.02 % 13.07% 13.53 %
on turnover
Net profit 4714700 11242289.71 14151236.39 19503705.55
before
depreciation
Depreciation ... turnover before
interest and
salary to
partners
Net profit % on 1.93% 2.33% 2.29% 3.98%
turnover after
interest and
salary to
partners
Therefore, the assessee claimed
