terms of percentage of the profit there was decrease
from 1.15% to 0.93% of the total turnover.
-8-
4.8 In view of above ... consideration in comparison to the earlier year but some expenses were
also decreased in comparison to the earlier year. As such all the
expenses were
directed the
Assessing Officer to apply NPR to 5.5% on the total turnover of Rs. 1,50,61,240/-.
7. Now the assessee ... authorities below and submitted that the decrease in NPR was due to the increase in
the turnover and this fact has not been appreciated
actions. We find that the ld CITA had
categorically stated that the turnover and the direct expenses incurred by the assessee
8 ITA No.2318 ... consumption to the percentage of turnover had increased by 34.95% and direct
expenses had decreased by 0.89% in the year ended 31.3.2009 when compared
ACIT
change which not only resulted in decrease in the turnover by 15% but
also resulted into shrinking of the margins. Therefore, he prayed
estimated the profit @ 11.5% on the turnover of Rs.
16.84 crore. The Hon'ble Bench has also considered its
order ... Assessee has claimed that with
the increase of turnover, profit rate is decreased. For
5 ITA 54 & 164/JP/2013_
Choudhary & Brothers
assessment order, the assessing officer
has picked up 4 cases where the turnover has ranged from Rs.8.13
crores to Rs.23.62 crores ... There is a
trend of decrease in G.P. as turnover goes up. Thus the fair
estimation of G.P. in the present case would
reasons beyond the appellant's control, assessee's
turnover has also decreased by approx. 859.74 crore leading to slight decrease
fixing GP% at 7% by taking cue from the part of
turnover (of earlier part of the year) of 5.1% is not sustainable ... years, including relevant financial year) is as under:-
Total Turnover 250758982 736968737 2595778118
Increase/Decrease in -59959722 50871881 23178182
Stock
Total 190799260 787840618 2618956300
Expenses
margin business increases, then the overall profitability
decreases and vice versa.
g) The amount of turnover during the year under consideration is
highest in comparison
noticed that
gross profit of the assessee has been decreased from 34.47% of the
total turnover to 26.16% of the turnover whereas turnover has
increased
