Law: Income Tax Ordinance, 1979

Section: 65,13(1)(aa)

Income Tax Ordinance (XXXI of 1979)----Ss.65 & 13(1)(aa)---Additional assessment ---Addition---Assessee was running a shop for selling products made by some manufacturer on commission basis---Commission, Freight, cash incentive, bonus received from manufacturer was not mentioned separately in the Trading and Profit and Loss Account but claimed that all these figures were included in the purchases---Addition made by Assessing Officer---Validity---Order of addition was set aside by Income-tax Appellate Tribunal with direction that the Assessing Officer should obtain copies of ledger accounts from manufacturer of the products and examine whether the said amounts were debited against purchases or were offered in cash on achievement of certain targets---If the amounts were debited against purchases and the said amounts and the purchases tally with the figures reported by the assessee, then there was no case for reassessment---If, however, the said amounts were paid in cash or were over and above the purchases reported by the assessee to manufacturer, the same may be held to be income liable to be assessed. ORDER SHAHID JAMAL (ACCOUNTANT MEMBER).---The above three appeals have been filed at the instance of the Department and are directed against learned A.A.C. Sukkars order, dated 22-8-1999. The learned A.A.C., in his impugned order has held that assessments completed under section 62 read with section 65 were based on the change of opinion and were not legally valid. The same were cancelled and original orders under section 59(1) of the Income Tax Ordinance were restored. 2. We have heard Mr. Shaukat Soomro, learned D.R. for the appellant and Mr. Abdul Tahir Ansari for the respondent. 3. The facts giving rise to above appeals are that the assessee, an individual, was running a shoe shop for selling Bata Products. His returns for the assessment years 1995-96 and 1996-97 were filed under Self-Assessment Scheme showing income of Rs.45,000, Rs.62,400 and Rs.67,000 and were accordingly assessed under section 59(1). Subsequently, the Department received information from Bata Head office about commission, freight, cash incentives and bonus having been given to the…

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