Law: Income Tax Act, 1922

Section: 66(2)

(a) Income-tax Act (XI of 1922)----S.66 (2)--Reference--Question of law to be considered should state all the facts which are contained in the order of the Tribunal (b) Income-tax Act (XI of 1922)- ---S. 5 (8)--C.B.R. Circular No.11 of 1972--Incumbent on Assessing Officer to strictly adhere to the directions given out in the Circular for tax treatment to loss of current assets of assessee in East Pakistan. JUDGMENT SALEEM AKHTAR, J.--The Department has filed this application under section 66 (2) of the Income Tax Act 1922 praying that the following question which arises from the order of the Tribunal dated 24-10-1977 be considered and answering as the Tribunal has refused to refer it to this Court:- "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the loss of assets due to fall of East Pakistan should be considered without adjusting the liabilities in terms of Board's Circular No.l of 1972? The statement of case as filed by the Department is incomplete and i material facts have not been stated. It is well recognised that the Department or any other party which applies for any question of law to be considered should state all the facts which are contained in the order of the Tribunal. As the statement of facts was lacking in material particulars Mr. Shaikh Haider had to read over all the orders which were passed by the Income Tax Officer, the appellate Assistant Commissioner of Income Tax and the Tribunal. The respondent had filed return of income for the assessment year 197273 claiming to be a non-charitable institution. This was not accepted by the Income Tax Officer, he did not allow exemption and proceeded to treat the applicant as a concern with predominant object of business and not charity. The assessee had claimed a sum of Rs.84,139 as loss of current asset suffered due to fall of East Pakistan. The Income Tax Officer noted that liabilities of the assessee in East Pakistan were more than the current asset and as such there was a loss of current asset after adjusting the liabilities therefore, he rejected the assessee's claim. The respondent assessee filed an appeal before the…

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