Law: Income Tax Ordinance, 1979

Section: 66A,12(16),80D,13

(a) Income Tax Ordinance (XXXI of 1979)----Ss.66---A, 12(16) & 80-D---Income from other sources---Travel agent--¬Assessee received amount for vacating its previous business place---1/10th of the amount was declared as income from other sources within terms of S.12(16) of the Ordinance which was accepted by the Assessing officer ---I.A.C. considering assessment erroneous and prejudicial to revenue in exercise of his powers under S.66-A of the Ordinance, directed LT.O. to adopt gross turn over for levying tax under S.80-D of the Ordinance---Receipts on account of vacation of premises---Held: I.A.C. had invoked the provision of S.66-A unnecessarily were not relevant for adopting gross turn-over in circumstances. (b) Income Tax Ordinance (XXXI of 1979)--- ----Ss.66-A & 80-D---Turn-over---Assessee, a travelling agent ---Commission--¬I.A.C. directed I.T.O. to adopt all receipts of travelling agent for purpose of levying tax under S.80-D of the Ordinance---Validity---Held, for purpose of levying tax under S.80-D, turn-over of travelling agent was his commission and not the entire payments received on behalf of principal carrier. (c) Income Tax Ordinance (XXXI of 1979)--- ----S.66-A---Assessee declared purchase price of office which was more than the price envisaged in registered deed of sale ---I.A.C. directed Assessing Officer to adopt market price and to take action under S.13 of the Ordinance---Held, such order could be considered erroneous and prejudicial to revenue, only if purchased price declared by assessee had been too low---Neither facts nor order under S.66-A suggested any understatement of purchase price ---Finding based on whims was clearly unsustainable ---Order under S.66-A was annulled by Tribunal. 1994 PTD (Trib.) 758 ref. ORDER This appeal is directed against Inspecting Additional Commissioner's order under section 66-A in respect of assessment year 1991-92. 2.Appellant, a private limited company, deriving income from Travel business as an approved I.T.A.T., agent, had declared a loan of Rs.3,59,602 for the year under appeal. During this year the assessee had received an amount of Rs.33,00,000 for vacating its previous business premises and…

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