Law: Income Tax Ordinance, 1979

Section: 59,59(1),66,66A,65

(a) Income-tax------Assessee, running a factory---Rent of the factory building was debitable to the manufacturing account according to the principles of accountancy. Advanced Accountancy by Hrishikesh Chakraborty; Double-Entry Book-Keeping by Jamshed R. Batliboi, 24th Edn. and Advanced Accounts by M.G. Shukla and T.S. Grewal rel. (b) Income Tax Ordinance (XXXI bf 1979)----Ss.66-A & 59(1)---Powers of Inspecting Additional Commissioner to revise Deputy Commissioner's order---Inaccurate particulars---Proper course of action on furnishing of inaccurate particulars of income by claiming excess rent was to proceed under S.65 of the Income Tax Ordinance, 1979 provided there was any definite evidence of concealment---Order passed under S.66-A of the Income Tax Ordinance, 1979 was vacated and assessment framed under S.59(1) of the Income Tax Ordinance, 1979 was restored by the Appellate tribunal in circumstances. 1984 PTD 137 and 1999 PTD (Trib.) 2851 ref. ORDER KHALID WAHEED AHMED (JUDICIAL MEMBER).---The above-titled appeal preference at the instance of the appellant (assessee) impugned the order, dated 17-5-2000 passed under section 66-A by the learned I.A.C. of Income-tax and Wealth Tax, Sheikhupura pertaining to the assessment years 1999-2000. 2. Brief facts of the case are that the original assessment was framed at income of Rs.20,50,377 under section 59(1) of the Income Tax Ordinance, 1979. The assessment framed by the Assessing Officer was found erroneous and prejudicial to the interest of the Revenue by the learned I.A.C. of Income-tax/Wealth Tax, Sheikhupura. The assessee was confronted through show-cause notice issued under section 66A on 15-3-2000 to the effect that the Factory Rent of Rs.1,80,500 has been claimed in the Manufacturing Account instead of Profit and Loss Account and further since the amount exceeded Rs.50,000 the same having not been paid through crossed cheque, the same was inadmissible expense in terms of section 24(ff) of the Income Tax Ordinance, 1979. The reply submitted by the assessee to the above show-cause notice and another show-cause notice dated 5-4-2000 were found unsatisfactory by the learned I.A.C. with the following…

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