I. T. A. NO.1173(IB) OF 1986-87, DECIDED ON 25TH JUNE, 1988. Versus I. T. A. NO.1173(IB) OF 1986-87, DECIDED ON 25TH JUNE, 1988.

ORDER

Brief facts giving rise to this appeal are that the assessee, namely, Messrs Khawaja & Sons, Rawalpindi a registered firm derives income from the execution of contracts with the Defence Department. It filed a return to declare net income of Rs.99,474 under Self Assessment Scheme. However, as case of the assessee was set apart for a detailed scrutiny based on a random ballot, assessment relating to the charge year 1985-86, was finalized under section 62 of the Income-tax Ordinance, 1979 (hereinafter called the Ordinance). In consequence thereof, gross profit rate of 171$ was applied on disclosed payments amounting to Rs.18,.06,692, thereby resulting in gross income of Rs.3,61,171. After adjusting admissible expenditure under various heads of P & L accounts, net income of the assessee was determined at Rs.1,70,281. Income as assessed heretobefore was contested in appeal before learned A.A.C., who by virtue of Appeal No.981, dated 28-4-1987, ordered acceptance of declared income under Self Assessment Scheme, thereby resulting in the filing of second appeal on behalf of the department before the Tribunal. This appeal after hearing has been disposed of today and my decision on it follows in the paras hereafter.

2. Learned DR to begin with has stated that since on page 3, Mr. Mahmood Anwar, had signed the return in the capacity of an individual, benefit of self-assessment scheme was rightly disallowed to the assessee for the charge year 1985-86. This plea has been controverted by learned counsel of the assessee with an equal emphasis who has in support of the assessee's claim for the benefit of self -assessment scheme has relied on letter No.243/1986, dated 24-3-1986, addressed to the Income-tax Officer, Circle-13, Rawalpindi. In a nutshell according to the letter mentioned heretobefore, it has been pointed out that the assessee was entitled to the benefit of self- assessment as during the previous year relevant to the charge year 1984-85, status of Messrs Khawaja & Sons was that of an A.O.P. Arguing further, learned counsel of the assessee has stated that since a statement of assets and liabilities was also filed in the case of MA3 Khawaja & Sons, as an A.O.P., it was entitled to the benefit of self-assessment scheme. Finally, he has submitted that even IT-30, for the charge year 1984-85, assigned the assessee the status of an A.O.P. and therefore, it was entitled to the benefit of self-assessment scheme for the charge year 1985-86. In consequence thereof, he has prayed that order of learned A.A.C. may be maintained by the Tribunal.

3. On looking into the evidence available on record, I have noted that in the return for the charge year 1984-85, status of an A.O.P. was claimed by the assessee in the relevant column on page 1. In so far as the word 'individual' on page 3 of the return is concerned, it seems to be the result of an interpolation as the word 'individual' differs in manner and style with signatures of Mr. Mahmood Anwar. This thing apart, on the assessment order itself, the Income-tax Officer did not assign any status to the assessee, while status of an A.O.P. was give to it on IT-30 for the charge year 1984-85. Based on these facts on record, I have no hesitation in stating that the Income-tax Officer treated the assessee as on A.O.P and in any case based on the foregoing facts, no other status could be given to the assessee except that of an A .O. P.

4. On looking into the record, I have further noted that even statement of assets and liabilities for the period ending 31-12-1983, was filed in the status of an A.O.P. and not an individual. At this stage, learned DR has stated that the statement of assets and liabilities could not be filed by an A.O.P. This contention, however, has not found favour with me and therefore, to set the controversy at rest, section 58 of the Ordinance, is given below:-

"Section 58.

Wealth Statement.-(1) The Income-tax Officer may, by notice in writing, require any assessee to furnish, on a date to be specified in the notice, a statement (hereinafter referred to as the 'wealth statement') in the prescribed form and verified in the prescribed manner giving particulars:-

(a) his total assets and liabilities as on the date or dates specified in such notice;

(b) the total assets and liabilities of his spouse, minor children and dependents as on the date or dates specified in such notice; and

(c) any assets transferred by him to any person during the period or periods specified in such notice and the consideration' therefor.

(2) Notwithstanding anything contained in subsection (l), every assessee, whose total income is not less than (one hundred) thousand rupees, shall furnish a wealth statement alongwith his return of total income and all the provisions of this Ordinance shall, so far as may be, apply to the wealth statement as they apply to a return of total income."

5. According to section 58 of the Ordinance, the Income-tax Officer could require any assessee to furnish a statement of his/its assets' and liabilities on a date to be specified in the notice. The word 'assessee' according to section 2(6) of the Ordinance reads as under:-

"Assessee" means a person by whom any tax or any other sum of money is payable under this Ordinance, and includes--

(a) every person in respect of whom any proceeding under this Ordinance has been taken for the assessment of his income or the income of any person in respect of which he is assessable or of the amount of refund due to him or such other person:-

(b) every person who A required to file a return of total income under section 55, section 72 or section 81; and.,

(c) every person who is deemed to be an assessee, or an assessee in default, under any provision of this Ordinance."

6. The word 'person' as defined in section 2(32) of the Ordinance "includes an individual, a firm, an association of persons, a Hindu undivided family, a company, a local authority and every other artificial juridical person". Therefore, reading sections 58 and 2(6) and (32) of the Ordinance together, I have been left in no manner of doubt that a statement of assets and liabilities could be requisitioned from an A.O.P. It could also be requisitioned from an individual with the additional information as per section 58(1)(b)(c) of the Ordinance. Hence a statement of assets and liabilities as filed by Messrs Khawaja & Sons for the charge year 1984-85, supports the proposition that the assessee was an A.O.P. for the said year. In this view of the matter, return of the assessee qualified for acceptance under self-assessment scheme for the charge year 1985-86. In consequence thereof, order of learned A.A.C. is maintained as a result of which the departmental appeal having been found without any merit, is hereby dismissed

M.B.A./541/T Appeal dismissed.