W.T.A. NO.299/LB OF 1996 VS W.T.A. NO.299/LB OF 1996
1997 P T D (Trib.) 2024
[Income-tax Appellate Tribunal Pakistan]
Before Muhammad Tauqir Afzal Malik, Judicial Member and Iftikhar Ahmad Bajwa, Accountant Member
W.T.A. No.299/LB of 1996, decided on 23/12/1996.
Wealth Tax Act (XV of 1963)--
----S.7---C.B.R. Circular No.l l of 1994, dated 17-7-1994---Valuation of commercial buildings---Determination---Assessee declared value of the shop as per P.T.I.---Assessing Officer adopted value following the C.B.R. Circular No.11 of 1994, dated 17-7-1994---Validity---Held, value of the shop which happened to be more than 10 times of the annual letting value but which had been accepted for the immediately preceding year shoed have been adopted in the assessment under appeal.
Saleem Akhtar Khan for Appellant.
Zafar Ahmad, D.R. for Respondent
Date of hearing: 20th June, 1996
ORDER
MUHAMMAD TAUQIR AFZAL MALIK (JUDICIAL MEMBER).---This is an appeal by the assessee on the point that the adoption of value of shop according to the Circular No. 11 of 1994 by the A&C (Appeals) and the adoption by Special Officer ignoring the P.T. 1 is against law and the adoption by Special Officer ignoring the P.T. 1 is against law and facts of the case.
2.Arguments heard record perused.
3. The assessee is owner of the Shop No.11 Sabzi Mandi, Lahore. The area of the shop is 7 Marlas. The total value of the shop was declared at Rs.2,40,000. Copy of P.T. 1 was also obtained by him and pled on record. The cost of the land was worked out at Rs.15,00,000 at the rate of Rs.2,00,000 per Maria and the covered area was worked out at 168) ;q. ft. at the rate of Rs.150 per. sq. ft. by the Assessing Officer. The learned A.A.C. of Appeals adopted the value of the land at the same rate but reduced the superstructure at the rate of Rs.100 per sq. ft. He has also referred to Circular No.11 of 1994. The contention of the learned counsel is that the shop is on rent since the assessment year 1975-76 and presently it is retching Rs.1,500 per month.
4. We have gone through the C. B. R. Circular No. ll of 1994 in which the second portion of the Circular deals with the commercial buildings which reads as under:
"(II) Commercial buildings
(a) The value of commercial buildings and shops shall be determined, as far as possible, in the manner prescribed in sub-para (1).
Sub-para (1) reads as follows:--
(1) "The market value of houses and apartments which have been let out is to be determined as ten times the gross annual letting value of such property."
5. There is no denial by the A.A.C. that the shop is on rent of Rs.1,500 per month. The annual letting value of the shop comes to Rs,1,000 and its ten times value works out to Rs.1,80,000 which is even lesser than the declared value. During the course of arguments, it has been pointed out that last year the value of the shop was adopted at Rs.2,50,000. A photostat copy of the order of A.A.C. of Wealth Tax, Circle-VII, Lahore is available on the file. The value of the shop at Rs.2,50,000 which happens to be more than 10 times of the annual letting value but which had been accepted for the immediately preceding year must be adopted in the assessment under appeal also.
6. The appeal succeeds as above.
M.S./365/Trib.???????????????????????????????????????????????????????????????????????? ?????????? Order accordingly.