Law: Income Tax Ordinance, 1979

Section: 16,59,62&12(7),9

(a) Income Tax Ordinance (XXXI of 1979)-----Ss. 16, 59, 62 & 12(7)---Salary---Self-Assessment---Loan advanced Addition ---Assessee returned income under Self-Assessment Scheme--I.T.O. finding that assessee had advanced loan to his wife, required assessee to declare interest under S.12(7) of the Ordinance which he failed--Assessing Officer found same to be concealment and made addition by processing case under S.62---Validity---Held, Assessing Officer's finding that the action of assessee tantamounted to concealment was not tenable as the assessee had declared the loan in his wealth statement---As all the facts had been disclosed, the conclusion of Authorities was unwarranted. (b) Income Tax Ordinance (XXXI of 1979)--- ----S. 9---Charge of tax---Agricultural income---Jurisdiction of Assessing Officer---Probe into agricultural income is beyond the Assessing Officer's jurisdiction as agricultural income does not come within the ambit of jurisdiction of provision of Income Tax Ordinance, 1979---Addition regarding agricultural income was deleted in circumstances. CIT v. Muhammad Hanif SC (1972) 83 ITR 215; CIT v. Anwar Ali SC (1970) 76 ITR 696; Muhammad Yaqoob v. Muhammad Ibahim (1986) 54 Tax 49 and I.T.A. No.666/LB of 1985-86 ref. ORDER This appeal has been filed by the appellant against the order of the CIT(A) for the assessment year 1982-83. The appellant has agitated the action of the assessing officer for processing his case under section 62 and the resultant addition made by the assessing officer under section 12(7). The appellant has also agitated the addition of Rs.1,15,000 made by the assessing officer from undisclosed sources. 2. The brief facts of the case are that the appellant is a Company Director and derives income from salary etc. The appellant filed a return to declare income at Rs.151,743. The scrutiny of the wealth statement revealed that the appellant advanced a loan of Rs. one lac to Mrs. Shahnaz Zahid. The assessment record of Mrs. Shahnaz Zahid revealed that she spent this amount for business and the assessee was required to declare interest under section 12(7) which the appellant had failed to declare. Thus it was held that appellant has…

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