Law: Income Tax Ordinance, 1979

Section: 13,13(1),13(1)(aa),19

(a) Income Tax Ordinance (XXXI of 1979)----S.13(1)---Unexplained investment---Onus of proof---Onus of proving the fact that assessee had concocted the story was not on the department since the burden was placed upon the assessee under S.13(1) of the Income Tax Ordinance, 1979 to offer satisfactory explanation to the effect that the sum of money admittedly available with the assessee in the relevant year was from a definite source and was not to be treated as unexplained money liable to be added as deemed income. (b) Income Tax Ordinance (XXXI of 1979)--- ----Ss.13(1)(aa) & 19---Addition---Agreement to sell ---Assessee had shown the amount from sale of property as exempt income on the basis of agreement to sell and affidavit from the purchaser but no sale deed in respect of such property was executes--- Assessing Officer made addition under S.13(1)(aa) of the Income Tax Ordinance, 1979 of such declared exempt income as well as income from house property was also assessed in the !antis of the assessee being the owner of such property which was deleted by the First Appellate Authority---Validity---Simple agreement to sell was never acted upon and there was no deed for sale and transfer of the property in question---Such a sham arrangement could not satisfy the requirements of S.13(1) or S.19 of the Income Tax Ordinance 1979 since the house property remained in the ownership of the assessee and the source of money declared by the assessee could not be attributed to any genuine sale of the property---Order of First Appellate Authority was declared unsustainable being devoid of correct interpretation of the provisions of the Income Tax Ordinance, 1979 and based on improper appraisal of evidence and incorrect appreciation of facts of the case and order of Assessing Officer was restored by the Appellate Tribunal. Bachu Bai F.E. Dinshaw v. CIT 1967 PTD 170; B.D. Avari v CIT 1989 PTD 670 (H.C, Kar.); CIT v. Hans Ri' Gupta (1982) 137 ITR 195 and CIT N Zorostrian Building Society Limited (1976) 102 ITR 499 rel. ORDER The above captioned appeals at the instance of the department are directed against the appellate order, dated 10-11-1999 passed by the learned A.A.C.,…

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