which net profit rate decreased.
7. We find that during the course of appellate preceding the
details of turnover of profit of the 3 years ... been shown on the gross turnover of
Rs.18.62 crores but surprisingly during the A.Y. 2012-13
turnover has increased toRs. 45.20 crores
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
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.17,36,68,915/- as compared to Net Profit of Rs.71,30,820/- at the rate
of 5% on the turnover ... Profit. It was found by Assessing Officer that security charges have been
decreased from 92.78% shown in the last year to 91.5% during the year
Officer noted
that the turnover of the assessee has increased, but the gross profit rate
and net profit rate has decreased. The assessee was asked ... profit rate of 8% may not be applied
on the total turnover. Consequently, the show cause notice stated that an
addition
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
that the turnover has increased from 48307984 to 83991597.
4
ITA NO. 380/Del/2012
However, the gross profit ratio has decreased from
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
regard submitted
following chart showing the turnover/gross profit and GP ratio as under:-
Sl.No. Assessment Turnover (Rs.) Gross profit G.P. Ratio (%)
Year ... increase in turnover
from 4.57 crore in AY 2004-05 to 5.54 crore in AY 2005-06 prices have
been decreased to ensure sales
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
