material cost
and decrease in total turnover. It is true that the turnover has decreased
by about 24% and there was increase in the price ... reference was due to decrease in turnover for the year under
reference. The turnover of the assessee firm decreased from
justification of increase in this expense was found
acceptable while the turnover was decreased.
21.2 Submission made by Ld. Counsel for the assessee ... expenses incurred by the assessee
during the year even though the turnover has
decreased, but the increase in price is beyond the
23
Anant Steel
this A.Y. he has shown the GP of 12.57% on
decreased turnover of Rs. 39,45,037/-. It is a generally accepted
principle that
returned a gross profit of Rs 10,56,671/-on a sales turnover of Rs
1,76,11,175/- giving a GP rate ... better than the previous year of 6.06% and thus even on
decreased turnover, the appellant was able to report a GP rate
Assessing Officer the
assessee has not given any reply for decrease in turnover.
9
According to Assessing Officer perusal of documents raise
following important issues ... filed before the
Assessing Officer. It was particularly explained that turnover
11
has decreased because there was some family dispute and out
of two units
rate chart submitted by the appellant, it is seen
that the turnover has decreased from Rs. 3,53,30,516/- in the
immediately preceding assessment ... merely using her estimations and
observing that since the turnover has decreased the profit was required
to be increased.
He also submitted that
years of the appellant shows that turnover in the current
year is similar to turnover in the assessment year 2009-10 and in that
year ... DCIT, Jaipur
similar turnover the N.P. was 2.30%. Further, the expenditure has
increased even when the turnover has decreased. The Authorized
Representative
about 2.48% on a
turnover of about Rs. 18 crore and in the relevant year the turnover has
decreased to about Rs. 7.5 crores
turnover and declares
in GP. Naturally to increase the turnover the assessee had to forgo
some margins. Turnover, GP, along with increase and decrease ... table given below:-
AY Sales GP GP Rate Increase Decrease in
Turnover in GP Rate
Turnover
compared to 2
preceding years, there is also a substantial decrease in turnover as compared
to the immediately preceding year
