wages to cover the discrepancies. He observed that the turnover of the assessee
had decreased from 20.19 crores to Rs.6.95 crores
such a
payment as excessive in view of decrease in the ratio of net profit to turnover.
He restricted the deduction to the amount
financial cost which
increased from 4.91% of Turnover in A.Y. 2011-12 to
5.91% of Turnover in A.Y. 2012-13. The Long Term ... Fall in GP Ratio 3.08%
4.25%
Less: Decrease in Depreciation (-)0.04%
Less: Decrease in Other Expenses (-)0.25%
Net Profit Ratio
further
argued that the sales turnover had increased by 14.18% but the
manufacturing sales had in fact decreased by 4.94% as the appellant had
begun
account of sale of scrap @
0.2% of the turnover. This aspect we have already dealt
with while dealing with the appeal for the year ... because of
rice in turnover, without producing any material that profit
margin on sales had decreased during the year. Though,
there is no evidence regarding
Officer noted
that the turnover of the assessee has increased, but the gross profit rate
and net profit rate has decreased. The assessee was asked ... profit rate of 8% may not be applied
on the total turnover. Consequently, the show cause notice stated that an
addition
that the turnover has increased from 48307984 to 83991597.
4
ITA NO. 380/Del/2012
However, the gross profit ratio has decreased from
from its investments in
developing the value of a trademark from its turnover and
market share where it has a long-term contract of sole
distribution ... additional return from the owner of the trademark, perhaps
through a decrease in the purchase price of the product or a
reduction in royalty rate
Vedanta Ltd (Earlier Known As Sterlite ... vs Acit, Circle- 26(1), New Delhi on 9
Acit, New Delhi vs Sh. Ashok Mittal, New Delhi on 30 October, 2017
IN THE