| Case ID |
fff1a74c-44bc-4951-93ec-4b9003d3a1de |
| Body |
View case body. Login to View |
| Case Number |
W.T.As. Nos. 7/HO to 9/HO of 1989-90 |
| Decision Date |
Nov 10, 1993 |
| Hearing Date |
Nov 03, 1993 |
| Decision |
In these three Wealth tax appeals, an important point was raised concerning the valuation of foreign assets/immovable property. The Tribunal found that the valuation methods prescribed under Rule 8(3) of the Wealth Tax Rules were inapplicable to properties situated outside Pakistan. As such, it was decided that the valuation of the property in question, located in Singapore, should be based on any sale deed or valuer's reports available with the assessee. The Tribunal set aside the valuation of the property situated abroad and directed the Wealth Tax Officer to make further inquiries from the assessee to determine the value disclosed in those documents. |
| Summary |
This landmark case, adjudicated by the Appellate Tribunal Inland Revenue, revolves around the Wealth Tax Act, 1963, especially focusing on the valuation of foreign properties under Section 7 and Rule 8(3). The appellant challenged the Wealth Tax Officer's method of valuing a property in Singapore by multiplying the Annual Letting Value (A.L.V.) by ten, arguing that this approach was intended for properties within Pakistan. The Tribunal concurred, emphasizing the impracticality of applying the same valuation criteria for foreign properties due to differences in location-specific factors. The decision underscores the necessity for the Wealth Tax Officer to rely on sale deeds or valuer's reports from the country where the property is located, unless contradictory evidence is presented. This case highlights the complexities of international property valuation under Pakistani tax laws and sets a precedent for considering local valuation factors when dealing with foreign assets. Keywords such as 'Wealth Tax Act', 'foreign property valuation', and 'Appellate Tribunal Inland Revenue' are crucial for understanding the implications of this case. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
|
| Judges |
SYED KABIRUL HASAN,
ASAD ARIF
|
| Lawyers |
Rehmat Shakeel,
Khalid Siddiqui
|
| Petitioners |
|
| Respondents |
|
| Citations |
1994 SLD 241,
1994 PTD 1019,
(1994) 69 TAX 117
|
| Other Citations |
Not available
|
| Laws Involved |
Wealth Tax Act, (XV of 1963)
|
| Sections |
7,
8(3),
3,
6,
2(e)
|