Law: Income Tax Ordinance, 1979

Section: 22,32(3)

(a) Income Tax Ordinance (XXXI of 1979)---Ss.22 & 32(3)---Income from business ---Assessee, applying G.P. rate on his own, returned sales---Sales being unvouched and unverifiable, were rejected---Income Tax Commissioner (Appeal) reduced the sales for two years and confirmed the third ---Assessee, being dissatisfied, and department, being aggrieved of reduction in estimate of sales in the two years carne up in appeal---Held, assessee had failed to convince for further relief to estimate of sales---First Appellate Authority found that in preceding year estimated sales were reduced and it was not certain whether department went in appeal--- Tribunal, keeping in view the estimate of sale finally determined by Appellate Authority in immediate preceding year, found that relief given by lower appellate forum was reasonable in years under appeal. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.22---Income from business---Claim of expenses in the head of staff salaries ---Assessee claimed relief in expenses in the head of staff salaries--¬ Assessing officer attempted to connect declared turnover with claim of expenses ~in the head of staff salaries in year under review and its comparison in earlier year---Validity---Held, this was clearly improper as for Assessing Officer did not record express findings on genuineness or otherwise or claim---Mere fact that in immediate preceding year lesser amount was expended in the head of staff salaries should not be made ground for disallowing part of same if claim was otherwise genuine and was established on record. ORDER NASIM SIKANDAR (JUDICIAL MEMBER)--Three cross-appeals for the assessment years 1988-89 to 1990-91 assail a consolidated order recorded by CIT(A) Faisalabad on 18-9-1991. 2. The appellant is a private limited company and derives income from a flour mills at Faisalabad. For the assessment years under review sales were returned at Rs.3,90,15,779, Rs.5,46,46,852 and Rs.5,36,56,610. The rates were returned respectively at 2.80 % ; 2.92 % and 2.98 % . The Assessing Officer rejected the returned version for a number of reasons including the fact that purchases of wheat were unverifiable; that rate of purchases…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492