Law: Income Tax Ordinance, 1979

Section: 13(1)(d),62,13,111(2)(c),111,64

Law: Stamp Act, of 1899

Section: 27A,23,First Schedule

Law: Wealth Tax Rules, 1963

Section: 8(3)

Law: Income Tax Act, 1922

Section: 2(6-A)

(a) Income Tax Ordinance (XXXIX of 1979)--- ----S. 13---Deemed income---Purport of S. 13---Power of Assessing Officer to make addition---Conditions---"Genuine contract" and "genuine consideration"-­Concept ---Where the assessee had not shown the correct price for which the property was purchased, Income Tax Officer, before making any addition in that behalf was not only to get prior approval of the Inspecting Assistant Commissioner but also give an opportunity to assessee ` to explain the investment---Addition under S. 13 was envisaged only if no satisfactory explanation was given---Value of such property could, however, be taken lower than the value fixed by the District Authorities under S. 13(2), where there were certain disadvantages or encumbrances attached thereto: The provisions of section 13 of Income Tax Ordinance have been specifically introduced by the Legislature to safeguard the interest of Revenue in case of unexplained investment. The provision of the section specifically gives the power to the I.T.O. that if the explanation given by the assessee is not satisfactory in the opinion of the I.T.O. the amount invested and not explained properly has to be taken as to be deemed income of the assessee. In this regard provisions of section 13(2) have to be read very carefully wherein it has been provided that if the investment made as shown by the assessee is too low, the I.T.O. can determine, after giving reasonable opportunity to the assessee of being heard and with the prior approval of the IA.C., a reasonable value and the difference between this reasonable value and the amount declared as invested has to be assessed as deemed income under subsection (1) of section 13. So, the conditionality laid down for any addition to be made under section 13(2) read with section_13(1) are:--- (1) The value of investment declared is too low. (2) If the I.T.O. thinks that the value declared is too low then he gets the approval of the IA.C. before confronting the assessee. This has been deliberately made mandatory to ensure that no high handedness is involved as far as I.T.O. is concerned; and (3) The explanation given by the assessee is not satisfactory. This is a…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492