assessee has shown gross loss of Rs.3,84,90s/- on
turnover of Rs. 97,00,9007- giving a negative G.P. rate ... Particular AY 2005-06 AY 2006-07 AY 2007-08
s
1 Turnover 1046512 4110820 9700908
2 Gross 233660 321520 -384905
Profit
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
assessee is
of 25.55%. There is an increase in sales turnover also. Thus, the assessee was
able to carry out its business more scientifically ... Jain
Asst.Year - 2011-12
-5-
of 20%, rather it goes on decreasing. In the Asstt.Year 2010-11, it was given
at the rate
there is a fall in turnover of the
assessee and the net profit rate of the assessee. While the turnover has reduced from ... present
assessment year, the net profit rate has decreased from 13.85% to 11.70%. The Assessing
Officer also noted that, at the same time, the remuneration
2009
11.25% of these expenses i.e. in .the ratio of the turnover of Unit-
IV withdrawn from Unit-111 are allocated to Unit ... Sales
2. Increase / Decrease Stock (10,709,117) -' (10,769,117) (5,485,820
3. Other income
said addition by 3% of the
turnover and has finally affirmed the addition of 2% of turnover
being Rs.22,51,893/- which is really ... observed that the assessee's GP margin has decreased
from 40.26% to 39.19%. He also noticed that the assessee has not maintained
quantitative details
total turnover of Rs.1,54,26,319/- as compared to 34.13% on a turnover
of Rs.1,36,6,026/- in the immediately preceding ... stated that
there was increase in manufacturing expenses by 2.07% and decrease in net margin
on sales of satin ribbon by 6.25% and the cost
decrease in average sale prices but
no details of increase in labour cost was given. The AO noticed that GP rate was
decreased from ... satisfactory explanation of such fall was given except showing that turnover has
increased to Rs.7.49 crore from Rs.4.20 crores
yield and also justify as to how the yield of
diamonds had decreased in the current year as compared to
that in the earlier year ... remained
almost constant however on the other hand there is a sharp
decrease in the yield of polished diamonds. The appellant has
not been able
