MUHAMMAD IHSAN QAZI VS COMMISSIONER OF INCOME-TAX/ WEALTH TAX ZONE-A, 2006 PTD-LAHORE-HIGH-COURT-LAHORE 48 (2005)

Wealth Tax Rules, 1963---

----R.8(3)---Determination of value of property---Valuation according to Valuation Chart maintained by the Registrar for purposes of stamp duty---Determination of location of property was essential for such valuation---Principles.

Shafqat Mehmood Chohan for Petitioner.

Muhammad Ilyas Khan for the Revenue.

ORDER

The Income Tax Appellate Tribunal, Lahore Bench, Lahore order dated 27-9-2002 in Wealth Tax Appeals Nos. 127/LB of 2001 and 128/LB of 2001 is being challenged before this Court. Paragraph 5 of the order explains the controversy which is reproduced as under:---

"We have heard both sides and have examined the available record and in our considered judgment, it is patent that the two plots measuring 25 and 20 Marlas are not situated anywhere near Mozang but rather just 100 yards or so of the main Mall Road, Lahore. That being so, there can be no question of applying D.C. notified rates for Mozang in assessee''s case and the AAC's direction in this regard are indeed wholly unjustified and against the facts on record regarding actual location of the two plots. We also find that the AAC has allowed material to be placed before her in the shape of DC letter dated 8-8-2000 without any justification when the said letter had not been issued on 3-1-2000 and 31-1-2000 when the assessments have been finalized. It is trite law that evidence not placed before the Assessing Officer cannot be submitted before the appellant authority, in appeal".

2. According to the learned counsel while determining the question with respect to valuation of the property under rule 8(3) of the Wealth Tax Act, 1963 (since repealed) the learned Tribunal ought to have referred to such material available on the file in case it differed with the view of the authority below who had accepted the clarification with respect to the valuation of the land for registration purposes on the basis of a letter from the Deputy Commissioner Lahore dated 8-8-2000. That the observations of the Tribunal were not based on the Revenue Record with respect to the location of the property and as such, this amounted to non-reading of the essential evidence and, therefore, the order is based on no evidence.

3. The essential question is with respect to the location of the property because once its location is determined its valuation will be easily found from the valuation, chart for purposes of stamp duty maintained by the Registrar which has to be adopted according to the rules.

4. One of the grounds taken by the learned Tribunal was that the letter of 8-8-2000 was placed on the file of the appellate authority and not of the assessing authority and therefore, was not acceptable.

5. In these circumstances, the best thing would be that the matter is referred back to the assessing authority who may after determining the location of the place and finding out as to what would be the assessed value according to the Revenue Authority determine the same within a period of two months from today. The order of the Tribunal is resultantly set aside.

S.A.K./M-1330/L??????????????????????????????????????????????????????????????????????????????? Case remanded.