Law: Income Tax Ordinance, 1979

Section: 13(I)(d),58,13(2)

(a) Income Tax Ordinance (XXXI or 1979)----Ss. 13(I)(d) & 58---Interpretation of S.13(1)(d)---Where an assessee has made any investment or acquired any article the difference between the market value of the investment or the article and the consideration paid by the assessee for making the investment or acquiring the article will not be deemed as income of the assessee---Provision of S.13(1)(d) would be applicable only where the Assessing Officer fords that the assessee has expended more amount for making the investment or acquiring the valuable article than the amount recorded in the books of accounts maintained by assessee or shown in the wealth statement furnished under S.58 of the Ordinance. The bare reading of the bare language of section 13(1)(d) of the Ordinance would show that it does not say that where an assessee has made any investment or Acquired any article the difference between the market value, of the investment or the article and the consideration paid by the assessee for making the investment or acquiring the article will be deemed as income of the, assessee. Clause (d) would be applicable only where the I.T.O. finds that the assessee has expended more amount for making the investment or acquiring the valuable article than the amount recorded in the books of accounts maintained by the assessee or shown in the wealth statement furnished under section 58 of the Ordinance. In the present case, the addition made by the tax authorities can be defended only if the said authorities had found that the assessee had actually expended more money than Rs.2,00,000 to acquire the area in dispute. The tax authorities in their approach to the matter appear to have proceeded on the assumption that if the market value of an asset acquired by an assessee exceeds the consideration paid for its acquisition, the difference between the two was to be treated as "deemed income" of the assessee. But the language of the relevant provisions of statute does not unequivocally support the raising of above assumption. To tax a citizen unambiguous legislative command is needed. In .the matter of fiscal statutes one has to lock merely at what is clearly said. There is no…

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