Wealth Tax Act (XV of 1963)---

----S.16---Assessment---Immovable assets---Verbal gift---Gifted property under Muhammadan Law was declared in the return under the Wealth Tax Act, 1963---Reliance was placed on the affidavit of the donor and acceptance of the donee by the assessee---Wealth Tax Officer did not accept same as a valid gift---Commissioner (Appeals) upheld the treatment ---Validity-- Appellate Tribunal directed the Authorities below to accept the gift regarding the immovable assets.

1986 SCMR 1126 and PLD 1975 Pesh. 12 ref.

Mirza Anwar Baig for Appellant.

Mrs. Sameera Yasin, D.R. for Respondent.

Date of hearing: 1st August, 1997.

ORDER

SHARIQ MAHMOOD (ACCOUNTANT MEMBER).---In the assessment year 1986-87 the assessee in the wealth tax return showed an immovable asset to the value of Rs.5,40,000. This was on account of property 6th floor of Al-Jannat Building, Roberts Road, Lahore. This immovable asset was said to have been gifted to the assessee by his father-in-law. The W.T.O. did not accept the same and excluded it from the total assets. The First Appellate Authority C.W.T.(A) Zone 3, Lahore -- upheld the treatment of the Assessing Officer.

2. The assessee is now in appeal maintaining that as a valid gift made under the Muhammadan Law had been accepted and property transferred there was no justification in charging it to tax. In support reliance was placed upon the affidavit of the donor, acceptance of the gift 1986 SCMR 1126 and PLD 1975 Pesh. 12. The A.R. further went to elaborate that the property was, subsequently, transferred in the name of the appellant as per Excise and Taxation records and even the Department w.e.f., charge year 1987-88 had accepted the gift and charged it to tax. On these submissions it was pleaded that the order of the First Appellate Authority was not justified.

3. The D.R. in the absence of record, could not controvert the submissions of the assessee but in principle supported the orders of the authorities below mainly on the plea that the property stood transferred in Excise and Taxation records in subsequent years and, as such, the impugned order should be upheld.

4. We have heard the arguments and find ourselves in agreement with the views of the appellant. The declared version of the assessee regarding the immovable asset should be accepted.

C.M.A./576/Trib. Appeal accepted.