Law: Income Tax Ordinance, 1979

Section: 134,14,22,27,136

Income Tax Ordinance (XXXI of 1979)---Ss. 14, 22, 27, 134 & 136---Capital gain---Sale of immovable property---Exemption from income tax---Assessee claimed that the gain arising from the sale/deals of immovable property was a capital gain and not income, but his claim was rejected by the Tribunals below holding that assessee regularly purchased big tracts of land and then under well thought out and contrived plans, converted same into the plots for purpose of sale; and that sales so conducted generated considerable income which was legitimately treated as `business income' attracting levy of income tax---Tribunals below on basis of an elaborate factual inquiry, investigation into record and available evidence, had rightly concluded that real estate dealing made by assessee, were essentially of a `business nature' and that assessee had all along been engaged in the real estate business---Record had shown that assessee never acquired a plot to build a house for himself, but he purchased tracts of land and on division of the same into plots, made sales and gained profits/income from such sales---Jurisdiction of High Court could only be invoked under S.136(2) of Income Tax Ordinance, 1979 on the question of law and not on questions of facts involving inquiry of the nature which had been held and finalized by the Tribunal---Questions involved in the case, in circumstances did not deserve a decision from High Court---Reference was declined by the High Court in circumstances. JUDGMENT MUHAMMAD SAIR ALI, J.---Through this judgment, P.T.Rs. Nos. 184 and 185 of 2001, being between the same parties and on the identical questions of law, are decided together. 2. For the assessment years 1992-93 and 1995-96, the appellant assessee filed returns as an individual respectively showing gains of Rs.7,35,000 and Rs.37,80,000 from the sale of immovable property. The Deputy Commissioner of Income Tax assessed the said gains as a business income and rejected applicant assessee's contention to treat it as exempt from the income tax being the capital gains. DCIT's findings were maintained by the CIT(A). Further appeal of the assessee before the learned Income Tax Appellate…

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