I.T.A. NO. 1524/LB OF 1992-93 VS I.T.A. NO. 1524/LB OF 1992-93
1997 P T D (Trib.) 2202
[Income-tax Appellate Tribunal Pakistan]
Before Ashfaq Ahmad, Accountant Member
I. T.A. No. 1524/LB of 1992-93, decided on 14/01/1997.
Income Tax Ordinance (XXXI of 1979)---
----S. 22---Income from business---Electronic goods---Estimate of sales-- Add backs in Profit and Loss Account ---Assessee returned income by applying his own G.P. rate---Assessing Officer, discarding declared results, adopted sales at higher level with his own G.P. rate and made add backs in P&L Account---First Appellate Forum maintained estimate of sales but deleted add backs in P & L Account---Case being that of no account, estimation of sales appeared slightly on higher side, therefore, sales were reduced a little and add backs deleted by Appellate Tribunal considering volume of business.
Saleem Akhtar for Appellant.
Mian Munawar Ghafoor, D.R. for Respondent.
Date of hearing: 6th January, 1997.
ORDER
This appeal has been filed by the appellant against the order of the CIT(A) for the assessment year 1991-92. The appellant has agitated the estimation of sales and the following add backs in the profit and loss account:---
| 1. Telephone | Rs.1,109 |
| 2.Entertainment | Rs. 800 |
| 3.Postage | Rs. 500 |
The issue of G.P. rate has not been pressed by the learned counsel.
2. The brief facts of the case are that the appellant, an individual derives income from dealing in electronic goods. The appellant declared sales at Rs.22 lac yielding a G.P. rate of 6.15%. The Assessing Officer after discussing various facts in the body of the assessment order estimated the sales at Rs.40 lac to which G.P. rate at 6.5% was applied. After making some add backs in the profit and loss account the net income of the appellant was determined at Rs.209,409 as against declared income of Rs.75,500. The appellant being aggrieved filed an appeal before the CIT(A) who maintained the estimate of sales but deleted the add backs in the profit and loss account under the heads conveyance, travelling and shop expenses.
3. We have heard the parties and gone through the orders passed by the authorities below. The learned A.R. of, the appellant has contended that the declared sales should have been accepted and the add backs made in the profit and loss account are not justified as the Assessing Officer has not quoted any instance of unverifiable nature of the claims. We have considered the submissions made by the learned A.R. This is a no accounts case. In the immediately preceding year sales were declared at Rs.27,50,000. The plea taken before the CIT(A) that there were no supplies in the year under appeal is not reflected in the assessment order. However, the estimation of sales at Rs.40 lac appears to be slightly on the higher side. Therefore, the sales are reduced to Rs.35 lac. The add backs made under the heads telephone, entertainment and postage at Rs.1,109, Rs.800 and Rs.500 respectively are deleted considering the volume of business conducted by the appellant.
4. The appeal is allowed in the above stated manner.
C.M.S./340/Trib. Appeal allowed.