The respondent filed the income return as a new assessee claiming qualffied under the Simplified Assessm ent Procedure for a new assessee; this was disallowed by the Assessing Authority, however, the CIT Appeal, allowed the same, which order was challenged by the A department, before the Income Tax Tribunal and the Tribunal has dismissed the same holding that "the assessee's return of income fully qualified for acceptance under Self-Assessment Scheme".
2. The question formulated in the matter follows as under:--- "Whether on the facts and in the circumstances of the ease, the learned Tribunal was justified to uphold that assessee's return qualified for acceptance under simplified assessment procedure being a new assessee."
3. It is argued by the learned counsel for the appellant that an assessee shall only qualify to be assessed under the Self-Assessm ent Scheme, if it is so specifically mentioned in the scheme, as there is no reference to a new assessee in para. 3(2) of the Circular No.7 of 1989 issued by the C.B.R.
Therefore, the respondent does not qualify to be a new assessee.
4. Heard. The Tribunal has dealt with the question in the following manner:-- "The Board in its Circular No.7 of 1989, dated 26-6-1989, ordered for acceptance of return of income under Self-Assessm ent Scheme in the ease of a new assessee; whose declared income was less than Rs.1,00,000. The -new' assessee was defined in para. 3(b) of the said Circular as under:--
(i) who had never filed a return of total income for any assessment year prior to the assessment year 1989-90 in respect of which tax (after any admissible rebate, allowance, etc) was payable or
(ii) whose assessed total income for any assessment year prior to assessment year 1989-90 had not resulted in tax demand (after any adniissible rebate, allowance, etc.)
5. In this case, the assessee, a Registered Firm, derives income from manufacture of agricultural implements. An income of Rs.2,91,828 was declared last year.. Clause 98 of the 2nd Schedule, to the Income Tax Ordinance inserted by Finance Act, 1985 exempted the income from manufacture of various agricultural machinery.
Neither of the two officers below have bothered to justify their actions by pointing out the specified machinery manufactured by the assessee/respondent. However, B it is presumed that the machinery manufactured by the assessee/ respondent fell within 46 types of machines specified in the said clause. As such the income of Rs.2,91,828 declared by the assessee/respondent had not resulted in any tax demand being exempt from tax.
We do not find any amiss or illegality in the order of the Tribunal, therefore, the question is accordingly answered. .