Law: Income Tax Ordinance, 1979

Section: 59(1)

Income Tax Ordinance (XXXI of 1979)---S. 59(1)---C.B.R. Circular No.22 of 1991 dated 21-7-1991---Self-Assessment Scheme---Selection of case for scrutiny---Non-disclosure of reasons ---Assessee returned income under 'Self-Assessment Scheme"--¬Assessing Officer, rejecting the assessee's version, selected the case for scrutiny on the ground that assessee had purchased shop valuing Rs.4,00;000 which was impossible within available sources and adopted income of the assessee at higher rate without affording opportunity ,to the assessee of being heard---Validity---Held, Assessee was never informed as to why his case was set apart for detailed scrutiny---Declared value of the shop in question was already accepted by the Assessing Officer during assessment proceedings--¬Assessing Officer was directed by Tribunal to accept assessee's declared income under Self-Assessment Scheme, in circumstances. 1994 PTD 494 ref. ORDER This appeal has been filed by the appellant against the order of the CIT(A) for the assessment year 1991-92. The appellant is aggrieved on account of selection of case for total audit, rejection of declared version, value of shop, sales estimate and addition made in cutting account. 2. The brief facts of the case are that the assessee, an individual derives income from dealings in paper. The appellant filed a return to declare income at Rs.68,000 under S.A.S. The appellant during the year under consideration purchased a shop in Urdu Bazar, Lahore for a consideration of Rs.4,00,000 which the assessing officer found to be under stated. Besides the assessing officer held that the declared and assessed income of the appellant was not adequate to purchase the shop for a consideration of Rs.4,00,000. Therefore, the case was set apart and processed under normal law. 3. However, at the time of assessment on scrutiny of wealth statement and record the assessing officer accepted the value declared by the appellant for the purchase of shop. Sales were estimated at Rs.10 lac to which G.P. rate at 10% was applied. Income from cutting machine was estimated at Rs.10,000. Addition under the head expenses was made at 84.6,000. Thus total income of the appellant was…

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