NAZIMUDDIN Versus PROVINCE OF SINDH

NASIR ASLAM ZAHID, J: ‑‑ In this petition, the orders under the Capital Gain Tax Act, 1963, and the Rules made thereunder of the Assessing Authorities assessing the sale value of the property sold by the petitioners in 1983 have been challenged. The property in question is located in Ram Bagh Quarters, Karachi (South) and it was purchased on 18‑11‑1972 by the petitioners for a sum of Rs.1,70,000. According to Mr. Rehmat Ellahi learned counsel for the petitioners, the Excise and Taxation Officer, by order, dated 31‑12‑1975, had assessed the gross annual rental value (GARY) of the property at Rs.54,410. In 1983, the petitioners sold the property to two purchasers for a sum of Rs.4,00,000. They filed a return under the relevant rules showing the relevant figures. However, the assessing authorities did not/accept the figures given by the petitioners regarding the capital gain accruing to the petitioners and, by the final order, the net sale value of the property for the purpose of Capital Gain Tax Act and the rules framed thereunder was determined at Rs.13,84,988.

2. We have hearned the learned counsel for the petitioners and also Mr. A.G. Mangi, learned Additional Advocate‑General. The main contention of Mr. Rehmat Ellahi, learned counsel for the petitioners, is that the assessing authorities while determining the sale value for the purpose of Capital Gains Tax Act; have relied upon an arbitrary formula and have not determined the value on the basis of the prescribed criteria. He has relied upon on two judgments of this Court, reported in the case of Philips Electrical Industries of Pakistan v. Director General/Secretary Excise and Taxation Department PLD 1978 Kar. 393 and Abid and Sons Ltd. v. Excise and Taxation Officer PLD 1985 Kar. 546.

3. Mr. A.G. Mangi, learned AA.‑G. concedes to the contention raised on behalf of the petitioners and submits that he has no objection to the remand of the case to the assessing authority. In the facts and circumstances of this case, we are also of the view that a case for remand has been made out. Accordingly, this petition is allowed, the assessment orders passed by the assessing authorities are set aside and the matter is remanded to the concerned assessing authority through the Director Excise and Taxation for re‑assessment on the basis of the prescribed criteria. Proceedings on remand will be taken after notice and hearing to the petitioners.

There shall be no order as to costs.

AA./N‑407/K Case remanded.