Law: Income Tax Ordinance, 1979

Section: 13(1)(aa)

Income Tax Ordinance (XXXI of 1979)---S.13(1)(aa)---Deemed income---Gift of immovable property to assessee by a person not related to the assesee---Validity---Gift was made through a registered gift deed and mutation was also effected accordingly---Rejection of such gift deed by the Assessing Officer on the ground that donor was not related to the assessee and adding an unexplained amount as deemed income to the assessee's income was not justified in circumstances. ORDER SYED KABIRUL HASAN (JUDICIAL MEMBER).---This appeal relating to assessment year 1991-92 is directed against the order of the learned CIT(A), Hyderabad, dated 20-1-96. 2. The brief facts are that the original assessment was completed under section 39(1) on 23-2-1995 at Rs.35,000. From perusal of wealth statement, it transpires that the assessee had received a Property No.C.S.56/1-20/0 measuring 138.8 sq. ft. as gift from Mr. Muhammad Hussain Wadiwala on 2-2-91. The assessing officer after considering the fact that this gift was not valid as the donor and donee were not related, therefore, he added an unexplained amount of Rs.1,64,616 under section 13(1)(aa) of the Income Tax Ordinance, 1979. The assessee want in appeal which was dismissed, and hence these appeals. 3. The learned A.R. for the assessee has stated that the gift of property was registered under registered under registered gift deed, and this fact is not denied by the assessing officer. The reason for non acceptance of gift was that the donor was not related to donee and in this respect the learned A.R. has submitted that under the Muhammadan Law, there is no such condition that the donor and donee and must be related and no other reasons have been assigned for non acceptance of the Gift Deed, therefore, the assessing officer has erred in holding that since she donor and donee are not related, therefore, the gift is invalid, and is not…

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