Law: Income Tax Ordinance, 1979

Section: 13(1),(2),13

(a) Income Tax Ordinance (XXXI of 1979)-----S. 13(1) & (2) Second appeal of Inspecting Assistant Commissioner when not required Assessee having been found to be the owner of "any money", no second approval under S. 13(2) of the Ordinance is involved Income tax Officer had not touched and criticized the quantum of assessee's investment in the purchase of landed property and had rather accepted the claim in that regard but had in fact disbelieved the assessee's assertion about the source he had utilized to finance the purchase of land Income tax Officer, after rejecting the assessee's claim about agricultural income proceeded to add the disputed amount in each year as deemed income of the assessee from undisclosed source Income tax Officer, held, was not required to get two approvals from Inspecting Assistant Commissioner as only one approval was required in the circumstances of the case in terms of S. 13(1) of the Ordinance and provisions of S.13(2) of the Ordinance were not at all attracted.(b) Income Tax Ordinance (XXXI of 1979) S.13(1) & (2) Interpretation, scope and application of S.13(1) & (2) �Approval/approvals of Inspecting Assistant Commissioner when required.A close examination of clause (aa) of section (1) of section 13 of the Ordinance would reveal that it covers three elements, namely, "any investment: made by the assessee and the assessee's "ownership of any money" or "valuable article". An addition under this clause on account of deemed income can be made by an Income tax Officer if, in any year, the assessee is found to have made "any investment" or is found to be the owner of "any money" or "valuable article". The provisions of subsection (2) of section 13 of the Ordinance would come into play in relation to clause (aa) of subsection (1) of section 13 only when the value of "any investment" or "valuable article" falling thereunder is sought to be increased on the ground of being too low. In that event alone would there arise the necessity of obtaining double approval from the Inspecting Assistant Commissioner concerned before making an addition on this score. The assessee would then be entitled to get a reasonable opportunity…