Law: Income Tax Ordinance, 1979

Section: 24,62

Law: Income Tax Rules, 1982

Section: 28,29

(a) Income Tax Ordinance (XXXI of 1979)......S. 62 Income Tax Rules, 1982, Rr. 28 & 29 Assessment on production of accounts, etc. Assessee a medical practitioner -Assessing Officer rejected declared receipts on the ground that complete identifying particulars of the patients were lacking, corollary of which was that the declared receipts remained unverifiable being mostly on cash basis Validity Since the assessee was maintaining books of accounts and had a history of acceptance of declared receipts, the cash receipts and the cheques received in a day were deposited in the Bank, the declared receipts could not be rejected merely on conjectures and surmises unless a finding of fact was recorded that on verification, the books of accounts disclosed some defects or discrepancies which could not be reasonably explained Once a particular method of accounting had been adopted and found helpful determining profit on the basis of such accounting system, the declared receipts could not be rejected in absence of any glaring defects or discrepancy pointed out therein -Assessee's declared receipts merited to be accepted in circumstances. (1984) 51 Tax 11 rel. (b) Income Tax Ordinance (XXXI of 1979) S. 62 Assessment on production of accounts, etc, Book results could not be disbelieved on suspicion unless proved otherwise by adducing substantial material on record, which should be more than mere suspicion. (c) Income Tax Ordinance (XXXI of 1979) S. 62 Assessment on production of accounts, etc. Assessing Officer was not fettered by the technical rules of evidence and pleadings and he was entitled to act on material which might not be accepted as an evidence in a Court of law. (d) Income Tax Ordinance (XXXI of 1979) S. 62 Assessment on production of accounts, etc. While formulating the assessment the Assessing Officer was not vested with the powers to make pure guesswork and also to make assessment without reference to any evidence or any material at all. (e) Income Tax Ordinance (XXXI of 1979) S. 62 Assessment on production of accounts, etc. Cash receipts -Estimation of receipts To receive cash from the patients on extending medical services to them was a hard fact of life…

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