Turnover decrease peofit increased allowed

it assessess turnover and gp and np details mentioned
year:21-22 turnover rs:60 lacs gp :6 lacs np rs:4,80,000/- show in it returns
year:22-23 turnover rs:55 lacs gp :6 lacs np :4,90,000/-
question:
assessess turnover decrease and profit declared increase allowed.
Replies (2)
Quick Summary
This discussion addresses a common query regarding tax returns: can declared profit increase even if turnover decreases? The consensus is yes, this is allowed. The example provided shows a scenario where turnover dropped from Rs 60 lacs to Rs 55 lacs, yet net profit rose slightly. This highlights that profit margins can improve, leading to a higher net profit despite lower sales.

Yes, allowed.                                              

Pls explain.

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