Law: Income Tax Ordinance, 1979

Section: 13(1),13(1)(aa),13(1)(d),59(1),62,111

Law: Income Tax Act, 1922

Section: 2(4-A)

THIS ORDER PASSED BY: NAZEER AHMAD SALEEMI (ACCOUNTANT MEMBER):------------- The assessee-appellant is an individual dealing in Zari goods in Bazaz Hatta, Lahore. As against declared income of Rs.118,100 under Self-Assessment Scheme, the claim under SAS was rejected under para. 4(i) of Board's Circular No.16 of 1992, dated 1-7-1992 with the permission of the IAC Range-3, Zone-A, Lahore and the following income was assessed. Sales declared. Sales estimated. GP 15% Less GP declared. Balance for additions. Add income declared. Addition under section 13(1)(d). Addition under section 13(1)(aa). Income assessed: Rs. 860,000 Rs. 24,00,000 Rs. 460,000 Rs. 129,000 Rs. 331,000 Rs . 118,000 Rs. 505,800 Rs. 10,31,440 Rs. 18,70 , 240 2. A complaint was received in this case alleging that the assessee / appellant had concealed bank balance in PLS Bank Account No.5645-9 with Habib Bank Ltd., Azam Cloth Market, Lahore. The case was thus taken up under normal law. The necessary notices were issued and the bank statement was called for the assessee also purchased a plot of land at 726 Ravi Block, Allama Iqbal Town, Lahore constructed the house thereon disclosing investment at Rs.11,40,000. Certain loans were also claimed in addition to sale of jewellery, receipt of gift and encashment of FEBCs. Specific notice under section 62 was issued confronting the assessee/appellant with the proposed estimate of sales and assessment of deemed income under section 13(1) of the Income Tax Ordinance. There was no compliance and another opportunity was granted in response to which different documents were furnished. The explanation was rejected and the above-referred addition was made. 3. The assessee went in appeal and the learned CIT(A) dismissed the appeal with the following findings: (i) Regarding the claim of acceptance of return under section 59(1) the assessee/appellant did not furnish any arguments. There being no force in the arguments of the AR regarding acceptance of claim under self-assessment scheme, it is observed that the case has rightly been assessed under the normal law. (ii) The sales were estimated in view of the bank deposits in bank account which only indicates the volume…

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