ratio of the appellant company has decreased as
compared to average of preceding three financial
years. The said decrease in GP and NP rate ... Turnover 1,020,152,679 73,94,89,024
% of financial charges over net turnover 5.48% 3.64%
% increase in financial charges 1.84%
Report
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
ACIT
change which not only resulted in decrease in the turnover by 15% but
also resulted into shrinking of the margins. Therefore, he prayed
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
which is slightly decreased
from previous year net profit of Rs. 5,14,19,208/- on total turnover of Rs.
89,71,37,753/- showing
gone down only as a
percentage of the turnover which had increased, there was no decrease In
absolute terms. Without taking all these facts into
simply stated that the G.P. ratio is decreased due to decline in sales
turnover and increase in purchase cost of raw material
increase of turnover and manufacturing activities as
against job work charges and due to flood gross profit has marginally
decreased. However, ld. Assessing Officer ... ignored some important facts which needs consideration in
adjudicating this issue:-
(1) Turnover of the assessee has more than doubled in Asst. Year
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
account of sale of scrap @
0.2% of the turnover. This aspect we have already dealt
with while dealing with the appeal for the year ... because of
rice in turnover, without producing any material that profit
margin on sales had decreased during the year. Though,
there is no evidence regarding
