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Falls in G. P. Ratio

(Querist) 24 August 2008 This query is : Resolved 
One of my client's case was selected for scrutiny U/s. 142(2). During the reference year G.P.ratio falls 1.5%compare to the Pr. year. A. O. wants addition on the base of G.P. Ratio.
Please send me advice What can i do?,
Actually market was bed for reference year, hence G.P. Ratio was falles.if anybody have any judjment, please send me.

Jitender (Expert) 24 October 2008
u need to prove him that there is a considerable increase in direct cost hence there is decline in g.p ratio.

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