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TMI Blog2010 (3) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... A RAJA P. P. S. JJ. Judgment: P. P. S. Janarthana Raja J.- The appellant has filed the above tax case appeal against the order of the Income-tax Appellate Tribunal, Chennai "B" Bench dated November 27, 2003, in I. T. A. No. 482/Mds/1997. 2. The above appeal is filed by raising three questions of law. But when the appeal came up for admission on July 12, 2004, this court admitted on the following two substantial questions of law : "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in simply relying upon the statement of the hus-band of the appellant alone as correct in law when no statement was recorded from the appellant ? 2. Whether on the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the hands of the wife under sec-tion 132(4) of the Act in respect of the deficit stock for the assessment year 1993-94. Further, the Assessing Officer also adopted a gross profit at 15 per cent. on the statement made by the husband before the officer. Aggrieved by that order, the assessee has filed an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) deleted the addition of Rs. 8,00,000 and sustained the addition of Rs. 50,000 and also was of the view that the profit in the line of business could not be more than 5 per cent. and therefore, fixed the gross profit at 5 per cent. as against 15 per cent. adopted by the Assessing Officer. Aggrieved by that order, the Revenue has filed the appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent. gross profit on the appellant's total sales and also correctly made addition, which is based on valid materials and evidence. Though enough opportunity was given to the assessee to prove the case, she has not produced any valid material before the authorities below to substantiate her claim. Therefore, the order passed by the Tri-bunal is in accordance with law and the same has to be confirmed. 6. Heard the learned counsel appearing on either side and perused the documents available on record. A raid was conducted under section 132 of the Income-tax Act in the business premises of the appellant/assessee on October 13, 1993. Actually the business of the appellant/assessee was carried on by her husband one Thanaseelan. The said Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged by her husband and he was in charge of the business. Therefore, he was in the know of all the activities of the business of the assessee." 7. From the facts, it is clear that the assessee's husband has voluntarily given the sworn statement. There is no dispute that the assessee's husband is in charge of the business of the assessee. It has been made categorical in his statement that the sales suppression in the assessee's proprietory con-cern M/s. Selladurai Nadar Marketing Centre was in the range of 15 to 20 per cent. and the approximate gross profit ratio was in the range of 15 per cent. and further he has stated that the amount of sales suppression in the said concern would work out to around Rs. 6 lakhs for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... high. The Commissioner of Income-tax (Appeals) has taken the G. P. rate at 2 per cent. which is very low compared to the market conditions. Taking into consideration that the assessee is a lady and that this is the first year of business of the assessee, we are of the opinion that the G. P. rate on retail sale of stainless steel vessels and aluminium products, etc., shall be at 8 per cent. Accordingly, we direct the Assessing Officer to take the G. P. rate in this case at 8 per cent. (eight) and conclude the assessment as per law." 9. So all the authorities below had determined the gross profits only on estimated basis. There is no material available for us to take a contrary view of the Tribunal. In the absence of any valid material o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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