Law: Income Tax Ordinance, 1979

Section: 23(1),32,34,136

Income Tax Ordinance (XXXI of 1979)]..... Ss.136 & 23(1) Reference to High Court Deductions-Depreciation allowance Assessee was under obligation to claim depreciation allowance as well as expenditure under the head maintenance of car in the Profit and Loss Account and non claim of such depreciation and expenses amounted to an ad hoc addition which was not permissible under the Self Assessment Scheme Validity Such was an allowance, which could only be allowed if claimed No concept of an allowance or depreciation existed in law without claim Appellate Tribunal found that the depreciation could not be allowed without claim and that the present was not fit case for cancellation of the order No substantial question of law arising from the order of the Appellate Tribunal, questions framed were considered as without any notable or useful purpose Appellate Tribunal refused to refer the same to High Court. CIT v. Mathendra Mills and others 2001 PTD 609 rel. ORDER KHAWAJA FAROOQ SAEED (JUDICIAL MEMBER). Following statement of the case and questions of law have been proposed on behalf of the Department for reference to the High Court: "The assessee, an A.O.P. derives income from manufacturing of auto parts. Original assessment for the assessment year 1996 97 in this case has been finalized under section 59(1) at net income of Rs.114,000 against declared income of Rs.114,000. Later on the assessment record was examined by the I.A.C. and the assessment was cancelled under section 66A after fulfilling all the procedural aspects. It has been observed that the assessee purchased new Car No. LIZ 4060 Model 1996 for a consideration of Rs.784,000 in the assessment year 1996 97. No expenses under the head maintenance and depreciation on car were claimed in the Profit and Loss Account. The Assessing Officer had not kept in view the statutory allowance, allowed under section 23(1) of the Income Tax Ordinance, 1979. The Assessing Officer did not put the return into initial scrutiny and ignored the aspect of sources of investment in the said car and also did not examine the issue of allowance of depreciation. It was further viewed that if the depreciation on the said car was…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492