Law: Wealth Tax Act, (XV of 1963)

Section: 5(1)(xvi)

Law: Wealth Tax Rules, 1963

Section: 8

Wealth Tax Act (XV of 1963)---S. 5(1)(xvi)---Wealth Tax Rules, 1963, R.8---Residential house--­Exemption---Option for ---Assessee returned value of residential house and one-half share in commercial building---Assessing Officer finding that exemption was claimed in respect of residential house in the preceding year but for the year under review no such claim was made, rejected the returned value of the property and adopted his own valuations under R.8 of the Wealth Tax Rules, 1963---Contention of assessee was that despite his claim for exemption, Assessing Officer had not allowed exemption and even if the claim was not made, the Assessing Officer was duty bound to allow the exemption---Held, claimed exemption would be available only where the assessee exercised the option for exemption---Absence of such option could not be said to cast upon the Assessing Officer a duty to exclude the property---No such carte blanche was intended for the assessee nor an obligation was intended to be cast upon the Assessing Officer to allow such relief even if it was not claimed---Allowing of exemption to the assessee with respect to residential house was subject to the condition of exercise of an option ---Assessee having failed to exercise the option at the assessment stage his claim for exemption after completion of assessment was not tenable at law. (b) Interpretation of statutes--- ---- Fiscal statutes---Provisions granting exemptions, have to be interpreted in the narrow sense. Messrs Army Welfare Sugar Mills and others v. Federation of Pakistan 1986 SCMR 1917 and Salim & Company v. C.B.R. 1997 PTD 1901 rel. (c) Wealth Tax Act (XV of 1963)--- ----S. 5---"Exemption" and "Statutory allowances"---Distinction---Exemption and statutory allowance in taxation system, do not rank at par in all situations---Assessing Officer is duty bound to grant statutory allowance, unlike exemption even in the absence of an express claim---Claim not made in the original proceedings can be made during appeal during which an order is certifiable under S.156 of the Income Tax Ordinance, 1979. (d) Wealth Tax Act (XV of 1963)--- ----S. 5---Exemption---Not claimed---Effect---Exemption not claimed…

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