Law: Income Tax Ordinance, 1979

Section: 136(2)

(a) Income-tax Ordinance (XXXI of 1979)---S. 136(2)--Reference to High Court--Question of purchase price of machinery as well as quantum of accumulated savings is a question of fact, which is in the exclusive domain of the Department and finding of the Tribunal is conclusive thus does not give rise to any question of law warranting answer to the reference. (b) Income-tax-- ---Benami transaction--Burden of proof. Generally speaking it would be incumbent upon the tax department to prove a transaction to be benami, if it is so alleged. However, this rule is not unexceptionable; for example this rule would apply if an assessee turns a deaf ear to the department and keeps mum, does not offer any explanation whatsoever, leaving it solely to be the department's baby to furnish proof positive, thus the onus would be on the department to prove the allegation by adducing direct as well as circumstantial evidence. But in cases, where an assessee offers an explanation, which if not substantiated, then, obviously it has its connotations, and the wavery conduct of the assessee would be posted on the debit side of his ledger. L. Sheo Narain Lal in re. (1954) 26 I T R 249; K.B. Sheikh Muhammad Naqi v. Commissioner of Income-tax Punjab (1945) 13 ITR 452 and Commissioner of Income-tax (Central), Calcutta v. Daulat Ram Rawatmull (1973) 87 I T R 349 distinguished. JUDGMENT FALAK SHER, J.-- This tax reference has been filed by the Assessee under section 136 (2) of the Income Tax Ordinance, 1979, consequent upon refusal of the Income Tax Appellate Tribunal on 19-3-1986, to make a reference to this Court. The questions referred for consideration are:- (i) Whether the Order of re-assessment by the Income Tax Officer dated 12-6-1982 is hit by the bar of limitation provided in section 66 (1) (c) of the Income Tax Ordinance, 1979. (ii) Whether the Income Tax Appellate Tribunal was right it holding that the property which was purchased by the Applicant's wife on 31-8-1983 for a sum of Rs.50,000 and later sold by her in October, 1974 before her death in June, 1975 could be treated to be the unexplained property of the applicant and whether there was material before the Tribunal for .u…

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