2001 PLP 1333 (PTD)

NASIM SIKANDAR, J.

This is a case stated by the Lahore Bench of the Income Tax Appellate Tribunal. The questions framed for our opinion and answer read as under:

(i) Whether on the facts and circumstances of the case the Tribunal was justified to discard the value adopted in assessment in the light of assessment made by Gain Tax Authorities and local enquiries regarding the fair market price? (2) Whether on the facts and circumstances of the case the Tribunal was justified to accept the value as per sale-deeds and to delete the additions in spite of the fact that the Tribunal itself observed in the order that it falls within exclusive jurisdiction of the I.T.O. to determine the market value of any property?

2. According to the statement of the case the five individual assessees purchased three properties for Rs. 2,00,000, 6,00,000 and Rs. 10,00,000 through registered sale-deeds dated 12-8-1985, 20-10-1985 and 29-8-1985. The Assessing Officer feeling that the real value of the same had been understated after getting an inquiry conducted through his Inspector proceeded to estimate the value of the three properties at Rs.4,50,000 rupees one lac and rupees eight lacs. Therefore, after deducting the declared value he made an addition of Rs. 1,44,133 in respect of each partner by resort to the provisions of section 13(1)(d) of the Income Tax Ordinance. The assessees partly succeeded before Commissioner (Appeals) who brought down their estimated values to Rs. four lacs, one lac and Rs.7,50,

000. Learned Tribunal, however, directed acceptance of the declared values on the ground that the Assessing Officer failed to assign any valid reason to reject the registered value which indicated the values determined by the District Collector.

3. After hearing the learned counsel for the revenue, we are of the view that neither of the two questions as framed by the Tribunal raise a legal controversy. It is a simple case of estimation of value by the Revenue Authorities and their cancellation by the learned Tribunal. Main reason which favoured with the learned tribunal being that proper basis were not evolved to reject the declared values nor for their subsequent estimation. It appears that the Tribunal felt satisfied of the declared. values after having gone through registered sale-deeds of similar properties sold in the area at the same point of time. Also they appear to have taken into consideration the fact that a sale-deed could not be registered at a sum lower than the rate fixed by the District Collector for various localities in the city keeping in view their market values. These values at least give the minimum price at which a property could be purchased through a registered sale-deed. To reject that value and to enhance the same requires various kinds of factual inquiries. These inquiries were not approved by the learned Tribunal. Lastly the' Tribunal in clear words expressed their view that an Assessing Officer was competent to determine the market value of any property and that the price witnessed by a sale-deed was not sacrosanct. However, as said earlier they were not satisfied with the basis on which the declared values were increased. That being so the questions as framed do not raise any legal controversy and, therefore, we will decline to answer them. M.B.A./C-45/L Order accordingly.