observed that the turnover has reduced as compared to the
preceding year i.e. it has decreased from 1.73 crores to Rs.1.22
crores ... comparison to the earlier year, but in the context of
the reduced turnover in the current year, the increased expenditure
partly explains the negative
Authorised representative objected to same again by pointing to decreasing
proportion of transportation charges to turnover. This is rejected since the nature of
work, manner
turnover,
therefore, no addition can be made without any adverse material / evidence
available on record. It is further submitted that assessee's turnover ... fact that due to worldwide recession the price had fallen coupled with decrease
in the exchange rate of US Dollars which has also affected
against 91 % in the immediately preceding year. Thus, there appeared an abnormal
decrease in the yield of finished products during the year under consideration ... copper scrap in the lesser turnover where as in the current year
on the increased turnover it has purchased lower copper scrap of 11.65 lakh
last year. In appellate proceedings AR has not
filed proper justification for decrease in G.P. rate to 4.64% however I find that
GP rate ... higher side, GP rate of 20% of declared
turnover is applied. Assessee gets resultant relief. This ground of appeal is
partly allowed."
Ground
Learned AR
has also argued that due to substantial increase in turnover there was
a slight deduction in the profit margin which was offered ... both the sides, we are also of
the view that the marginal decrease in the gross profit ratio was
properly explained by the assessee; hence
which is 80% of turnover which is practically
impossible in such business. Assessee's income has decreased in the
subsequent years and deduction
assessee has declared following trading results in the
earlier years.
A.Y Turnover Gross Profit GP Rate ... increase in turnover
6
has been achieved by reducing the sale rate of goods sold and margin of
profits thereon. Small decrease
Acit, New Delhi vs Sh. Ashok Mittal, New Delhi on 30 October, 2017
IN THE
labour expenses claimed were of Rs.23.35
crores against the total turnover of Rs.1.01 crores. However, during
the year under appeal ... total turnover of Rs.2.19 crores
therefore, the Ld. CIT(A) was of the view that use of machine was
higher which decreased
