Messrs SHEIKH TRADERS VS INCOME TAX APPELLATE TRIBUNAL, LAHORE BENCH, LAHORE and others, 2007 PTD-LAHORE-HIGH-COURT-LAHORE 2073 (2007)

Income Tax Ordinance (XLIX of 2001)---

----Ss.120, 122, 131 & 133---Addition to declared income---Appeal---Income Tax Officer added amount to assessee's declared .amount and Income Tax Appellate Tribunal-affirmed Income Tax Officer's order---Validity---Quantum of income added in declared amount was based on appreciation. of evidence on record, which tantamounted to finding of fact--Assessee, who derived its income from the business of a flour mill, did not produce any bock of accounts in support of its declared version---Assessing officer gave his findings on the basis of the report of an independent Chartered Accountant who was appointed to audit the record of assessee---Increase in the assessee's consumption of electricity units during relevant period was also treated as another relevant statistic by the Tribunal to make impugned addition to the assessee's income---'Contention of assessee that impugned addition was devoid of supporting evidence, was factually incorrect---Whether material relied upon by the Tribunal, sufficed to sustain the amount of addition made by the Tribunal by impugned finding, required appraisal of evidence and interference with a finding of fact., which exercise was outside the arena of inquiry undertaken by High Court in appeal---No legal question having arisen for determination, appeal was dismissed.

Latif Ali Qureshi for Appellant.

Khadim Hussain Zahid for Respondents.

ORDER

This appeal has been filed against the decision dated 2-12-1999 of Income Tax Appellate Tribunal, Lahore Bench that affirms the I.T.O.'s order dated 26-8-1998 adding Rs.241,476 to the appellants declared income of Rs.465,600 for the assessment year 1997-98. The quantum of income' added by the Tribunal is based upon the appreciation of the evidence on record anti tantamounts to a finding of fact. When the learned counsel for the appellant was asked to explain the legal question arising for determination in this appeal, he submitted that the addition made by the learned Tribunal to the appellant's declared income is based on no evidence whatsoever and this deficiency constitutes a question of law.

2. A perusal of the order of the learned Tribunal shows that the appellant derives its income from the business of a flour mills during the assessment proceedings. The appellant did not produce any books of accounts in support of its declared version. The Assessing Officer gave his findings on the basis of the report of an independent chartered accountant who was appointed to audit the records of the appellant. Apart therefrom, the increase in the appellant's consumption of electricity units during the relevant period was treated as another relevant statistic by the learned Tribunal to make the impugned addition to the appellant's income.

3. Consequently, the assertion of the learned counsel for the appellant that the impugned addition is devoid of supporting evidence is factually incorrect. Whether the aforesaid material relied by the learned Tribunal suffices to sustain the amount of the addition made by the impugned finding requires an appraisal of evidence and interference with a finding of fact. That exercise is outside the arena of inquiry undertaken by us in appeal. No legal question arises for determination in this appeal which is accordingly, dismissed.

H.B.T./5-123/LAppeal dismissed.