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
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
reflected G.P. of
Rs.42,56,225/- @ 8.42% on the total turnover of Rs.5,05,71,362/- for
the year under consideration ... against G.P. of Rs.26,64,364/- @
14.06% on the total turnover of Rs.1,89,45,856/- in the preceding
assessment year
restricting the addition of gross profit at 9% on turnover as against 9.5%
made by the AO. The assessee is in appeal challenging the order ... sores and spares by 1.07%, increase in
labour charges by 0.99% and decrease in job charges per meter. The AO
did not accept the explanation
assessment was getting time barred. The
A.O compared the turnover of the assessee in the preceding year vis-à-
vis the expenditure like wages ... telephone, diesel expenses etc.,
from the point of view of increase or decrease in the said expenditure.
So far as the disallowance of wages
total turnover of Rs.1,54,26,319/- as compared to 34.13% on a turnover
of Rs.1,36,6,026/- in the immediately preceding ... stated that
there was increase in manufacturing expenses by 2.07% and decrease in net margin
on sales of satin ribbon by 6.25% and the cost
that the main reason for decrease in gross profit ratio was
because of higher cost of purchase and decrease in sale price ... assessee and estimated the gross
profit at 5% of the turnover and made the addition on this account.
The addition was challenged before the learned
Bessar Diamond Mfg. Co.Pvt.Ltd.,, ... vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD
Nemson Texturisers, Surat vs Department Of Income Tax
IN THE INCOME TAX APPELLATE TRIBUNAL
'
