Law: Income Tax Ordinance, 1979

Section: 13(1)(d),13(1)(e)

(a) Income Tax Ordinance (XXXI of 1979)----S.13(1)(d)---Addition---Validity---Assessee purchasedproperty, consideration of which was settled about 10 years earlier and transaction was completed subsequently---Addition was made on basis of current prevailing market price ---Assessee produced necessary evidence in his support but Assessing Officer ignoring the same made addition which was confirmed by First Appellate Authority---Held, assumption about investment was not based on material on record and evidence supporting declared value was not rebutted---Addition was not sustainable in circumstances. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.13(1)(e)---Additions---Validity---Declared household expenses by assessee was rejected and were adopted at higher level by Assessing Officer---Additions, however, were made with routine observation---Held, in the absence of specific evidence, additions based on estimate of expenses were unsustainable. ORDER Appellant derives income as salary from Messrs National Feeds Lahore. In the four appeals relating to Assessment years 1986-87 and 1989-90 to 1991-92 additions under sections 13(l)(d) and 13(1)(e) are being contested. The four appeals are disposed of in this order. 3. For Assessment year 1986-87 addition of Rs.1,32,000 under section 13(1)(d) is in question. Appellant had shown purchase of a plot measuring about 10 Marlas in Gulshan-e-Ravi, Lahore for Rs.18.000 which was estimated by the I.T.O. at Rs.1,50,000 and thus the difference of Rs.1,32,000 was deemed as income under section 13(1)(d) of the Income Tax Ordinance. According to the appellant, the transaction had been agreed upon in 1976 when the consideration was settled and, therefore, addition or the basis of the, prevailing market rate during Assessment year 1986-87 was unjustified. It was contended that necessary evidence had- been furnished to the I.T.O. also that she had made the addition totally ignoring the factual position of the transaction. 3. Appellant's contention is borne out by records. The best order sheet entry prior to the assessment reads as under:--- "Present Mr. Dr. Riaz Ahmad Bhatti stated that the plot was purchased in 1976 for a…

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