Law: Finance Act, 1991

Section: 12

Finance Act (XII of 1991)----S. 12---Corporate Assets Tax---Work in progress ---Taxability--­Appellate Tribunal directed the Assessing Officer to charge Corporate Assets Tax on the work in progress after obtaining the details of assets from the assessee. D.C.I.T. v. Messrs Fatima Enterprises, Multan I.T.A.T. No. 897/LB of 1998 ref. ORDER KHAWAJA EAROOQ SAEED (JUDICIAL MEMBER).---These are cross-appeals except for LT.A No.3286 for the assessment year 1992-93 which is on the issue of CAT. Additions in Profit and Loss expenses is contested by the assessee while the Department is against partial modification and deletion by the CIT. The assessee argument in support of his claim is that the add­backs are not maintainable. Further, in the support of his claim is that the add-backs are not maintainable. Further, in the presence of acceptance of Trading Account, there is no justification in partial modification in the P&L. The maintenance of accounts in the case of P&L is on the same fashion on which the Trading account has been prepared, everything he remarked is vouched and verifiable and Assessing Officer failed to found or pin-point any discrepancy therein. On the other hand the learned D.R. said that a notice under section 62 was issued, assessee in reply whereof could not satisfy the Assessing Officer hence add-backs were made. He, therefore; urged the restoration of the relief allowed by the CIT. We confronted this matter to learned A.R. who repeated that the add-backs are not maintainable for want of specific defects in the accounts of the assessed. He, however, could not either produce the notice under section 62 of reply in compliance thereto. On the other hand the learned D.R. was without record besides departmental grounds are vague. We, therefore, cannot subscribe in views of either of them. In this regard the judgment mentioned by learned A.R. in support 13f his contention that where Trading accounts are accepted stronger responsibility costs over the shoulder of the Department is also ignored. In this case not only that the assessee had a history of add-backs but also a. notice under section 62 has been issued. Furthermore, the Tribunal has set…

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