Law: Income Tax Ordinance, 1979

Section: 62

Income Tax Ordinance (XXXI of 1979) S. 62 Assessment on production of accounts, evidence etc. Accounts case Estimation of sales without pointing out any defects in accounts Validity Appellate Tribunal directed the Assessing Officer to accept the declared version of the assessee since no instance of defective nature in accounts had been quoted in the assessment order. 1974 PTD 45 and 1999 PTD (Trib.) 3892 ref. ORDER MUNSIF KHAN MINHAS (JUDICIAL MEMBER). -Cross appeals have been preferred by the assessee as well as the Revenue for the assessment year 2002 2003 to impugn the Order, dated 22 7 2003 and for the assessment year 2001-2002, the Revenue is only in appeal to contest the order, dated 27 6 2002. Both the impugned orders have been passed by the Learned CIT, Appeals Zone IV, Lahore. ASSESSMENT YEAR 2002 2003 2. Firstly, we take up the cross appeals pertaining to the assessment year 2002 2003 for decision. The contention of the assessee as per grounds of appeal for the assessment year 2002 2003 is that the Taxation Officer was unjustified to estimate sales at Rs.90,00,000 against declared at Rs.60,59,000 and reduction by learned CIT(A) to Rs.63,61,950 was still excessive and unjustified. The application of G. P. @ 15 % against declared @ 10 % and its confirmation by the learned CIT(A) was unjustified. On the other side, the Revenue has stated in its grounds of appeal that the sales were assessed at Rs.90,00,000 for the assessment year 2002 2003 keeping in view the history of the case. According to the Revenue, on the basis of Dandekar Formula, sales come to Rs.64,18,263. The contention of the Revenue is that the learned CIT(A) had fixed sales at Rs.88,00,000 for the year 2001 2002 in this case and he was not justified in directing to estimate sales on the basis of Dandekar Formula without any cogent reason. 3. Relevant facts of the case under consideration are that the assessee, an Individual, derives income from sale and purchase of M.S. Pipe throughout the country. At first appellate stage, learned CIT(A) observed in the impugned order that so far as sales were concerned, as per assessment order, the purchases were verifiable, it was the contention of the…

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