Law: Income Tax Act, 1922

Section: 34

Income Tax Act (XI of 1922)---S.34---Concealment of income---Non-declaration of exempt income in the column of income tax return form---Agricultural land was converted into small plots and was sold---Assessee did not declare income from the sale of such plots. in his income tax return but declared the same in wealth tax---Income Tax Appellate Tribunal found that such income of assessee was in the nature of sale proceeds of plot of land in the nature of gain and no income was concealed---Validity---Income Tax Appellate Tribunal had rightly found that profit/gain after development of agricultural land was not liable to income tax and that the income so earned was not required to be disclosed in the return of income---Tribunal was also right in holding that the entire facts were disclosed in wealth statement and non-disclosure of income/gain in the relevant column of the return of income would not amount to concealment or suppression of particulars of income/gain---Findings given by Income Tax Appellate Tribunal were in consonance with the law and were not open to any exception---Questions referred by the Tribunal were answered in -affirmative---Reference was disposed of accordingly. Syed Akhtar Ali v. Commissioner of Income Tax, Hyderabad, 1994 PTD 675 ref. Edulji Dinshaw Limited v. Income Tax Officer (1990) 61 Tax 105 rel. JUDGMENT MUHAMMAD MUJEEBULLAH SIDDIQUI, J.---Through this Reference, the learned Income Tax Appellate Tribunal, Karachi, has referred the following questions of law for our consideration:--- "(1) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified to hold that the surplus or gain arising to the assessee from the sale of plots after development of agricultural land was not liable to income tax? (2) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified to hold that the income alleged to have been concealed or suppressed was not chargeable to income tax and accordingly clause (b) of subsection (1A) of section 34 of the repealed Income Tax Act, 1922 was not applicable? (3) Whether on the facts and in the circumstances of the case, the Income…

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