Law: Income Tax Ordinance, 1979

Section:

(a) Incometax-----Assessment---Addition---Assessment order made on pure surmises and conjectures and without bringing any material evidence on record cannot be allowed to stand in law---Suspicion and grave doubt cannot take place of legal proof---Assessing Officer is not entitled to make an assessment without reference to any evidence or material; he is not even entitled to make any guess without any evidence. Suleman Haji Umar v. Controller of Estate Duty, Karachi (1975) 31 Tax 132 ref. (b) Income-tax--- ----Assessment---Estimate of income---Pre-condition--Round addition--¬Assessee, a legal practitioner---Bulk of receipts of professional fees were through cheques and a list of the cases conducted by the assessee during the relevant year, was provided by assessee---Assessing Officer, held, could not disbelieve the particulars provided by the assessee without probing the matter in depth or bringing additional material on record---Round addition in the estimated receipt was clearly improper and illegal---Where an estimate had to be made, it should be based upon the facts and circumstances of the case as obtaining on record and not on the basis of whims and desires---Where, however, pre-condition of availability of material or evidence to support an estimate did not exist nor any serious attempt appeared to have ever been made to bring one to light and Assessing Officer had failed to support his estimate of receipts by any evidence worth the name, Income Tax Appellate Tribunal directed that declared receipts by the assessee be accepted. Suleman Haji Umar v. Controller of Estate Duty, Karachi (1975) 31 Tax 132 and Dawood Corporation v. CIT, Karachi 1989 PTD 177 ref. ORDER NASIM SIKANDAR, JUDICIAL MEMBER.---This further appeal by a practising Advocate assails an order recorded by AAC, Range-E, Lahore on 10-4-1988. 2. The assessee returned an income of Rs.64,700 for the year 1982-83. On selection of his case for total audit declared receipts at Rs.117,000 were rejected and estimated at Rs.150,000. No proper books of accounts as required under law were, found to have been maintained. The assessing officer also found the shown household expenses at Rs.36,000 to be…

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