9911796707
TMI Blog2010 (3) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 case the Tribunal was right in adopting the gross profit at 8 per cent. without assigning any valid reasons or basis to arrive at such gross profit con-trary to the gross profits shown in the books of account ?" 3. The assessee is the proprietrix of M/s. Selladurai Nadar Marketing Centre and engaged in the business of stainless steel utensils and other consumer durables. The assessment year is 1993-94 and the corresponding accounting year ended on March 31, 1993. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 appeal before the Income-tax Appellate Tribunal. The Appellate Tribunal confirmed the ad hoc addition of Rs. 6 lakhs as the assessee's husband in his statement had admitted the value of suppression of stock and also fixed the gross profit at 8 per cent. on the retail sale of stainless steel vessels and aluminium products, etc., as against 5 per cent. fixed by the Commissioner of Income-tax (Appeals). Aggrieved by that, the assessee has filed the present appeal. 4. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Thanaseelan had given sworn statement before the Income-tax Department and he had also admitted the discrepancy in the business carried on by himself and his wife and in his statement, he stated that he resorted to sales suppression and that the percentage of such suppression constitutes about 15 to 20 per cent. of the total sales turnover and further categorically stated that the deficit stock and sales suppression in the business works out to Rs. 6,00,000 during the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The said statement was also placed before the assessee and also oppor-tunity was given to the assessee to render evidence to rebut the same. But the assessee was silent without producing any material evidence. There-fore, the Tribunal came to the conclusion that the Assessing Officer was correct in making the addition. The Commissioner of Income-tax (Appeals) has not given any proper reason. Therefore, the finding given by the Tri-bunal is based on valid materials a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his 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 on record, we are of the view that the Tribunal is correct in fixing the gross profit at 8 per cent. We do not find any error or illegality in the order passed by the Tribunal warranting interference. In these circumstances, the second question of law is answered against the assessee and in favour the Revenue. In these cir- cumstances, we do not find any merit in the appeal filed by the assessee and the same is dismissed. No costs.
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