Law: Income Tax Ordinance, 1979

Section: 59

(a) Income tax----- Assessee, a contractor---Deposit call receipts---Nature---Deposit call receipt being an amount which represents security of contractor with the contracting Authority for execution of contract satisfactorily and refundable is not part of contract payments---Deposit call receipt, in fact, is the contractors money which is to be refunded by the contracting Authority. (b) Income Tax Ordinance (XXXI of 1979)--- ----S. 59---Self-Assessment Scheme (1985-86), para.9---C.B.R. Circular No.8 of 1985, dated 17th June, 1985---Exclusion of a case from purview of Self-¬Assessment Scheme on ground of concealment of income by assessee--¬Procedure---Assessee has to be confronted, as to the alleged concealment and asked his explanation therefor before exclusion of his case from the purview of Self-Assessment Scheme---Income Tax Officers arriving at a conclusion of concealment first and then issuing the notice to the assessee for explanation would indicate that he did not have positive evidence of concealment by the assessee---Exclusion of assessees case from purview of Self-Assessment Scheme, in circumstances, was not justified. ORDER MUHAMMAD MUSHTAQ (ACCOUNTANT MEMBER).---This appeal has been filed on behalf of the Income Tax Department challenging the order of learned C.I.T. (Appeals), Zone-II, Lahore vide A.O. N6.1224/A, dated 4-9-1986. 2. The brief facts leading to this appeal are that the respondent in this case M/s. Tenzo Engineering, Lahore (hereinafter also referred to as the assessee) is a registered firm, earning its income from execution of contracts. For the assessment year under consideration the assessee filed its income-tax return declaring net income at Rs.2,45,000 under Self-Assessment Scheme. The income-tax return filed by the assessee was not accepted under Self-Assessment Scheme because I.T.O. was of the view that assessee had committed concealment. A perusal of the record indicates that assessee declared trading results as under:--- Gross receipts Rs.1,09,53,414 G.P. rate. 12.48% The I.T.O. drew inference of concealment on the ground that as per payment certificate, total payments were indicated at Rs.1,12,71,814 whereas the assessee had…

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