Transfers of assets

Claim of refund was rejected with the observation that the letter rejecting the claim may be treated as an order under S.170 of the Income Tax Ordinance, 2001

First Appellate Authority directed to issue refund for all the years

Department contended that First Appellate Authority was not justified to ignore the provisions of S.90 of the Income Tax Ordinance, 2001 as there was no transfer of assets to spouse or minor child, the income of the subject asset would always be considered to be the income of the transferor

Refund, if any arising out of the same was to be claimed/adjusted by the husband of the assessee

Validity

Actual asset namely "investment certificates" were not transferred to the assessee but as per transfer deed executed by the donor (husband) it was the income arising out of the investment certificates which were to be given to the assessee (wife)

Commissioner was supposed to dispose of the application within 45 days which was not complied with and even otherwise, when the application of the assessee with regard to the claim of refund was rejected, the assessee was not given an opportunity of being heard as contemplated vide S.170(4) of the Income Tax Ordinance, 2001

Even if the income from certificates was to be treated as income of the husband, he did not claim refund with regard to the deduction by the concerned authority

Appeals preferred by the Revenue did not have any merit which were dismissed by the Appellate Tribunal and order of First Appellate Authority was upheld.