Governor India
(P) Ltd. [2009] 312 ITR 254 (SC)
2.6 REASONS FOR DECREASE IN GROSS PROFIT PERCENTAGE
2.6.i Assessee company also effectively marketed ... offering competitive rates which is visible from the fact that the
turnover increased from Rs. 57.11 crores during preceding
year to Rs. 94.38 crores
rate at 5% on the total turnover by
keeping in view that there was slight increase in the turnover of the
assessee. Now the assessee ... that the decrease in the net profit rate in
comparison to the preceding year was on account of increase in the
turnover. It was further
turnover of Rs. 15,31,53,579/- which is an extremely large
percentage.
(iii) No reasons have been given for decrease in freight
receipts this
written submission
about decrease in US dollar or its any effect on the G.P.rate, the
turnovers and GP rates of previous 2 years
rate has decreased from 22.45% in the previous
assessment year to 13.89% during this assessment year.
However, the turnover has increased from Rs. 1.64 crores
various years is as under:-
AY Travelling & Turnover Expenditure as
Conveyance (Rs. in % of Turnover
Expenses (Rs. in crores)
crores ... evident that the amount of expenditure on
travelling and conveyance expenses has decreased since AY 2006-07
and continuously on downward trend. Therefore, considering
explained that fall
in gross profit was attributed to the increase in turnover
from Rs. 6.40 crores to Rs. 9.57 crores. Hence, the gross
profit ... year which was earned on a meager turnover of
Rs. 1.04 crores whereas in this year the turnover has increased from
Rs. 1.04 crores
sales rate of the assessee was higher which resulted
to substantial decrease in sales of the assessee in AY 2009-10.
When the assessee lower ... Jaipur wherein
the GP of this firm 15.30% on declared turnover of Rs.
11,77,70,683/- was accepted. The copy of assessment order
2011_
ITO Vs Smt. Manju Devi
G.P. has decreased from 11.65% to 4.07% in the current
year. However, he failed to appreciate the significant ... business and also involved only part
of such period. Moreover, the turnover in the current year
has risen to 9.09 crores in compare
Increase in turnover in period 09/11 to 30/12-
Financial Year Period Total Turnover ... turnover for the period 9-11 to 30-12 was
Rs. 24,10,695 as against Rs. 29,93,487/-. At the outset, we submit
