I-T.A. NO.5060/LB/DB OF 1991-92 VS I-T.A. NO.5060/LB/DB OF 1991-92
1997 P T D (Trib.) 2094
[Income Tax Appellate Tribunal Pakistan]
Before Saleem Asghar Mian, Accountant Member and
Ch. Muhammad Ishaq, Judicial Member
I.T.A. No.5060/LB/DB of 1991-92, decided on 07/04/1996.
Income Tax Ordinance (XXXI of 1979)---
----S.63---Best judgment assessment---Estimate of sale price of shops comprising plaza ---Assessee constructed shops and sold same at different rates---Declared version was not accepted---Assessing Officer adopted higher rate of sale which was confirmed by C.I.T.(A) at Rs.1,000 per sq. ft.-- Considering facts that sale price of those shops had been made after entering into agreement to sell and difference in sale prices was due to location, Tribunal adopted average sale price at Rs.800 per sq. ft. for ground floor and for Ist floor at Rs.400 per sq. ft.
Ahmad Nauman, A.R. for Appellant.
Muhammad Akram Tahir, D.R. for Respondent.
Date of hearing: 7th April, 1996.
ORDER
SALEEM ASGHAR MIAN (ACCOUNTANT MEMBER).---The assessee in this case is private limited company deriving income from construction and sale of shops in a shopping Plaza and is aggrieved with the order of the CIT(A)-I, Lahore for the Assessment Year 1989-90.
2. The facts are that the assessee's declared version was discarded as the books of accounts and the supporting documents maintained by the Company not found to be reliable by the ITO. The assessee had constructed shops and sold the same in a two stored Plaza and as per the contention of the assessee these shops had been sold at different rates which varied from Rs.500 to Rs.2094 per sq. ft. on the ground floor and Rs.96 to Rs.225 on the first floor. The Assessing Officer had found this to be implausible and the extent of deviation in the sale price for similar nits on the same floor was also found to go against the reliability of the results. He had adopted the sale rate at Rs.1500 per sq. ft. for the ground floor and Rs.500 for the first floor on average. In appeal the sale rate at Rs.1,000 per sq. ft. was maintained for the ground floor as the ITO had himself in the assessment order stated that the rate to be adopted at Rs.1,000 for the ground floor. It has now been agitated that the rates fixed in the appeal were exorbitant as the assessee has genuinely and truly declared the sale rates for each shop sold and that is why the sale price even went up to Rs.2094 per. sq. ft. It was agitated that the shop situated at the far end of the Plaza or away from the passages did not get as good a rate as those in the front. No doubt there is merit in this argument but while some difference in sae prices due to the location is acceptable the deviation in the assessee's case is unreasonably high. At the same time, the valuation adopted by the Assessing Officer and maintained by the CIT (Appeals) also considering the fact that the sale of these shops' have been trade after entering into an agreement to sell appears excessive. It would be appropriate if the average sale price per sq. ft. for the ground floor is adopted at Rs.800 per sq. ft. and for the first floor at Rs.400 per sq.ft. The appeal succeeds to the extent indicated above.
C.M.S./265/Trib. Order accordingly.