The petitioner is an assessee of income-tax and feels aggrieved of order, dated 23-11-1995 whereby the Commissioner of Income-tax proceeded to dismiss the revision filed by the petitioner against the order of the Deputy Commissioner of Income-tax, dated 29-12-1994.
2. Learned counsel for the petitioner has pointed out that the impugned orders are based on a fallacy of law inasmuch as the respondents have failed to keep the distinction between the property tax and income-tax in mind. According to the learned counsel two acts are totally different and operate in different fields.
3.. Learned counsel for the respondent has defended the impugned orders and has argued that the petitioner has failed to produce any proof of the fact that the premises had remained vacant.
4. Having heard the learned counsel for the parties at length and perused the relevant record it becomes evident that the orders passed by the authorities below cannot be sustained. Admittedly property tax is a tax on the value of the property and has to be paid irrespective of the occupation of the property by anyone. On the other hand income-tax is a tax on the income A from the property and unless some income is generated from the property no tax can be levied merely on the ground that it was valuable property and property tax is being paid.
In view of the above, this petition is accepted the orders of the authorities below are declared to be without lawful authority and of no legal effect and the case is remitted back to the Deputy Commissioner of Income-tax, Zone-B, Lahore for decision afresh. On the request of the learned counsel for the respondents it is clarified that it shall be open to the respondents to determine as to whether or not the property was on rent and further as to what income was being generated by it.