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
gross profit margins. The appellant
also submitted a comparative chart of turnover and expenses for the year under
consideration and the immediately preceding year ... production and as a result there was decline in the turnover also. There was
decline in the consumption of the raw material as well. However
Dollar and
Pound Sterling and because of these adverse conditions, the turnover had fallen
down by almost Rs.5 crore. It was submitted that ... thus, GP rate was
lower because of increase in purchase cost and decrease in sale price.
Necessary books of account along with vouchers, bills
assessee has shown gross loss of Rs.3,84,90s/- on
turnover of Rs. 97,00,9007- giving a negative G.P. rate ... Particular AY 2005-06 AY 2006-07 AY 2007-08
s
1 Turnover 1046512 4110820 9700908
2 Gross 233660 321520 -384905
Profit
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
concerned, the
estimation of GP from the turnover, I find that the Managing
Partner of the assessee-firm himself had explained that the
sale price ... margin and thereafter, it
is doubled, so as to enable them to decrease the price, so that
even if the customer bargains his margin would
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
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
decrease in average sale prices but
no details of increase in labour cost was given. The AO noticed that GP rate was
decreased from ... satisfactory explanation of such fall was given except showing that turnover has
increased to Rs.7.49 crore from Rs.4.20 crores
appellant, it is noticed that the appellant has substantially
increased his turnover of jewellery segment from Rs. 8,23,17,258/- in the earlier year ... from the said business strategy on the ground that there
is substantial decrease in the profit margin and traders in the similar trade are declaring
