Law: Income Tax Ordinance, 1979

Section: 62,59

Income Tax Ordinance (XXXI of 1979)----Ss. 62 & 59---C.B.R. Circular No.16 of 1992, para. 4(ii)---Self--Assessment Scheme---Detailed scrutiny ---Assessee returned income/sales applying his own C.P. rate---Assessing Officer rejecting the same, assessed the assessee at higher rate on the ground that his declared version was too low to believe ---Assessee's case was selected for detailed scrutiny under S.62 of the Ordinance ---C.I.T. (A), giving him some relief regarding estimate of sales, confirmed the selection of case for detailed scrutiny---Validity---Held, as assessee was unable to controvert the finding of the C.I.T. (A), therefore, the case was rightly held for selection for detailed scrutiny in circumstances. [p. 772] A ORDER This appeal has been filed by the appellant against the order of the CIT (A) for the assessment year 1992-93. The appellant feels aggrieved against selection of the case under para. 4(ii) of Circular No.16 of 1992, sales estimate and expenses. 2. The brief facts of the case are that the appellant derives income from manufacture and sale of sanitary goods etc. The return was filed to declare income at Rs.41,000. The RCIT Islamabad set apart the case under para 4(ii) as the appellant was running two factories and the sales of these two factories have been declared only to the tune of Rs.3,02,000. The sales were declared by the appellant at Rs.302,000 yielding a G.P. rate of 25%. Expenses were claimed at Rs.34,500. The assessing Officer accordingly issued a notice under section 62. The reply tendered by the appellant did not find favour and consequently the assessment was framed under normal law. Sales from Marble unit were estimated at Rs.6 -lac to which G.P. rate at 25% was applied. Sales from sanitary unit were estimated at' Rs.5 lac to which G.P. rate at 25 % was applied. Some add-backs in the profit and loss account were also made under various heads. The appellant being aggrieved filed an appeal before the CIT (A) who reduced the sales from sanitary unit to Rs.350,000, expenses were allowed as claimed at Rs.34,500 whereas the sales from Marble unit were confirmed. 3. We have heard the parties…

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