Law: Income Tax Ordinance, 1979

Section: 13(1)(d)

Income Tax Ordinance (XXXI of 1979)-----S.13(1)(d)---Deemed income---Addition---Valuation of asset---Income Tax Officer can estimate the value of any asset if he finds that the assessee has acquired the same by expending more money than what is written in his books---Such estimation, however, has to be based on any objective criteria---If the estimation of value made by the Income Tax Officer is not supported by any material evidence, the value of the property declared by the assessee has to be accepted. ORDER CH. IRSHAD AHMAD (JUDICIAL MEMBER): --The assessee, an individual, earns income from business, house property and salary. The wealth statement filed by the assessee alongwith the return of income for the assessment year 1983-84 showed that he had, during the period relevant to the aforesaid assessment year, purchased two plots of land; one for Rs.1,40,000 and the other for Rs.1,08,275. The assessing officer raised his eye-brows on the declared price of the plots and after making certain inquiries estimated them of the value of Rs.4,00,000 and Rs.3,30,000 respectively, and the difference of the estimated value and of the declared value was added to the income of the assessee. as deemed income under section 13 of the Income Tax Ordinance, 1979. On appeal by the assessee, the Commissioner of Income Tax (A) reduced the value of the plots of Rs.3,00,000 and Rs.2,50,000 respectively. Through this further appeal, the assessee has objected to the orders of the tax authorities on the…

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