large cash deposits during demonetization period
and abnormal increase in sales with decreased profitability. From
perusal of records, it is also observed that appellant deposited ... during the year under consideration. Though
turnover increased during the year but it is also noticed that profit
was also increased for the year under
Dollar and
Pound Sterling and because of these adverse conditions, the turnover had fallen
down by almost Rs.5 crore. It was submitted that ... thus, GP rate was
lower because of increase in purchase cost and decrease in sale price.
Necessary books of account along with vouchers, bills
turnover of the assessee during the year under
consideration is 46.48 crores and in immediately
preceding year i.e., A.Y. 2016-17 the turnover ... During A.Y. 2017-18 cash sales of the assessee have
decreased to Rs.4,90,69,680/- as compared to cash sales
well as diamond jewllery and thus the contention that the
sales decreased in subsequent year cannot be accepted. Besides, it
is also seen from ... that the assessee firm
has achieved sales turnover of Rs.19,29,59,989/- despite there
being strike in jewellery business during this year which
duce d). Due to e ffo rt of directo rs turnove r has increased
year after ye ar but net profit has de cline ... contro l on othe r
expenses in te rms of percentage of turnover. T he comparative ratio
of GP and N P is shown below
computed by Ld. AO/TPO on
account of treatment of
decrease in stock as non-
operating in nature.
It was submitted that after incorporating correct ... certain filters like some companies are with
abnormally high margin and high turnover.
10 ITA no. 1153/Del/2014
(Element K India
years with the current year
and found that there is a sharp decrease in the profitability of the assessee
company, which ... assessee before the lower authorities. It
also produced a chart showing the turnover and gross profit and net profit
of the assessee. With respect
logic. The A.O. has lost
sight of the fact that the turnover of the appellant company has increased
multifold and by this logic also ... increased by 0.79%) during the year under
consideration. Had there been any decrease or loss resultant to the
increase of consumption, it would have been
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
ruled out. The contention
of the assessee that the rate of commission decreased with
much higher volume could have been taken to a logical
conclusion ... rate of such commission
suffered a dip with the increase in turnover.
11. This fact can not be lost sight of that we are dealing
