However, keeping in view the fact that the assessee's turnover has
been increased from ... will be justified. It is well settled that when turnover
increases, margin of profit decreases. The rate of GP in the immediate
preceding assessment year
other contentions regarding decrease in direct cost to the extent of Rs.193.41 lakh and
increase in total turnover etc. were never made before ... verification regarding these two claims in connection
with decrease in direct cost and increase in total turnover.
5. We have considered the rival submissions, perused
years ranging
from 37.64% to 43.04%. The AO observed that though the turnover of
the assessee declined by 17% vis-a-vis the preceding year ... relevant material on
record, it is noticed that though the turnover of the assessee decreased in
comparison with the preceding year, the Assessing Officer
through
a substantial downfall which is reflected by the sale turnover and has decreased from
phase of this company either in terms of turnover or
operating profit margin. Whereas its turnover for the financial year
2004-05 stood ... fact, in sync with the
increase and decrease of the assessee's turnover and profitability in the
earlier two years
noticed that
gross profit of the assessee has been decreased from 34.47% of the
total turnover to 26.16% of the turnover whereas turnover has
increased
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
last year balance at Rs.25,54,378/-. Thus, the advance
had decreased during the year under consideration. Copies of all these accounts ... categorically observed that even in case of
fall in turnover there may not be proportionate decrease in the salary as the regular
employees cannot
turnover was abnormally high for the year under
consideration, sharp decrease in the turnover for F.Y. 2016-17 and also
sharp increase
paid as lumpsum, therefore the same can
increase or decrease on the basis of turnover.
5
6.3 I find that various decisions relied
