Law: Income Tax Ordinance, 1979

Section: 2(44),2(f),29(3)(b)&ThirdSched.,R.8(5),2 9(3)

(a) Income Tax Ordinance (XXXI of 1979)----S.2(44)---Total income---Words of S.2(44) of the Income Tax Ordinance, 1979 do not refer only to income of an industrial concern from manufacturing and other business activity but also to the income from any other sources including deemed income, which under the provisions of Income Tax Ordinance, 1979 is liable to be included in the total income of an assessee. (b) Workers Welfare Fund Ordinance (XXXVI of 1979)--- ----S.2(f)---Chargeability---All kinds of income of an industrial concern from any kind of source mentioned in S.2(f) of the Ordinance and of other income including deemed income are subject to the levy of Workers Welfare Fund and legally justified. (c) Income Tax Ordinance (XXXI of 1979)--- ----S.29(3)(b) & Third Sched., R.8(5)---Sale proceeds---Valuation of assets-¬Determination---Fair market value---Sale of fixed assets---Sale value declared by the assessee was rejected by the Assessing Officer---Addition made with the approval of I.A.C.---Neither any instance of unverifiability was given nor any reason supported by any evidence for determining the terminal profit was provided---Held, additions made in estimate of value of assets was not in accordance with law and, thus, liable to deletion. (d) Income Tax Ordinance (XXXI of 1979)--- ----S.29(3)---Definition of "fair market value" contained in S.29(3) of the Ordinance provides procedure to determine fair market value---Two stages in-built in the definition are clearly distinguishable---Second stage comes in operation only when the first method does not work---Discretion available to the D.C.I.T. to determine the fair market value is invocable only when the price of asset in the open market is not ascertainable. (e) Income Tax Ordinance (XXXI of 1979)--- ----S.29(3)(b)---Discretion invoked under sub-clause (b) of S.29(3) of the Ordinance, like any other discretion vested in a judicial or quasi judicial authority, can be used only in a judicious manner. (f) Income-tax--- ----Mere confronting an assessee to the proposed valuation hardly means anything if the valuation ultimately adopted is not supported by any evidence. (g) Income Tax Ordinance (XXXI of…

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