books of results and estimated the profit @ 8% of the
total turnover thereby making an addition of
Rs.3,95,09,726/- without allowing ... this decrease is normal on account of significant increase
3
Vimal Khurana Pro. M/s. Royal Enterprises
ITANo.1312/Ind/2016
in the turnover which
achieved turnover of Rs.736 lacs as against 200 lacs in the
earlier year. Therefore, there was increase of almost 268% in the
turnover ... thereafter noted that the
turnover of the assessee has increased by more than 3.5 times and
increased turnover would normally result in increase in over
side. We have gone through the past results
and find that the turnover of the assessee in assessment year ... find while turnover of the assessee is increasing
from year to year the GP rate is decreasing. It is also not understood
material price and decrease in sale price due to tough competition.
Further, he submitted that looking to the volume of turnover, the activity
of ready ... Profit was due to increase in the cost of raw-
material and decrease in sale realization. We find that the AO did not
give
this year
although the turnover of assessee has increased by 1.7 times but the average job
charges decreased to Rs 5.25 per meter as against ... production mix. Though the turnover of the assessee has increased by
1.7 times, but the average job charges decreased to Rs.5.25 per meter
estimation of turnover and income thereon. We find
that the Assessing Officer has estimated a net profit @ 1% on the estimated
turnover on 1.5 crore ... nature and will not vary with the
increase or decrease of the turnover and therefore gross profit rate inspite of
net profit rate should have
cannot be known at the time of the agreement
what the turnover or profits will be over a period of
years. In similar interpretation ... lump sum, therefore, the same can increase or decrease
on the basis of turnover. It is also pertinent to note that
the above expenditure
moisture in the material per unit production
decreased. In all the other months the consumption of unit are normally
ranging within ... preceding year despite of around 20% increase in turnover. In
other words, there is just marginal decrease in GP rate. Also, if trading addition
could not be rejected solely for
the reason that despite decrease in its turnover the expenses had more or
less remained static. Also the assessee
increase
the sales, margin of GP has slightly decreased in as much as the
turnover is roughly doubled. Thus, there is full justification ... increase the
sales, margin of GP has slightly decreased in as much as the turnover is
roughly doubled . The assessee did not submitted details
