Law: Income Tax Ordinance, 1979

Section: 62

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

(a) Income Tax Ordinance (XXXI of 1979)---S.62---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Assessment of sales based on the estimates of survey team which were allegedly made on gun-point and .without apprising the Complainant/assessee of the figure that would be put in after obtaining his signatures---Validity---Some credence had to be given to the estimates of the survey team provided they were valid and according to law---If a person objected to the estimates of the team he should file his objections within a reasonable time---Was difficult to verify the complainant/assessee's contention that he was unaware of the estimates of the survey team or any coercion was used in obtaining his signatures---Sales estimated adopted for the year 2000-2001 on the basis of survey estimates could hardly be considered as harsh---First Appellate Authority had also confirmed the sales estimate---No intervention was called for by the Federal Tax Ombudsman as for as the assessment year 2000-2001 was concerned. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.62---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Estimation of sales---Sales were assessed. at Rs.16,00,000 for the assessment year 2002-2003 as against the sales estimated by the survey team at Rs.12,00,000 in the assessment year 2000-2001---Validity---Estimate of total sales at Rs.16,00,000 did not appear to be based on any valid grounds because even if it was assumed that the estimates of the survey team were reasonable it did not follow that the sales would have increased by Rs.4,00,000 in the year 2002-2003---Order was arbitrary which suffers from administrative excess and involves exercise of power for improper motives---Fresh enquiries need to be made in the light of the complainant/assessee's contention that his business was on a very small scale----Federal Tax Ombudsman recommended that enquiry be made regarding the extent of the complainant's business and if it is found that the estimate of sales adopted in the year 2002-2003 is excessive, necessary action be taken under S.122A of the Income Tax Ordinance, 2001 to reduce the…

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