ISLAMABAD, Nov 27: Federal Tax Ombudsman (FTO) Justice (Retd) Saleem Akhtar has directed the Central Board of Revenue that income assessment of an assessee should be based on cogent evidences.

The FTO observed: “While assessing the income, care should be taken to have a realistic view particularly in cases in which the assessee does not produce proper book and record of his receipts and expenses. In such cases estimate should be based on cogent evidence and reliable legal information, which should be clearly brought on record”.

The Ombudsman further said that it should not be based on mere presumption or stereotyped phrases customarily used in assessment order, said an announcement issued here on Tuesday.

He made this observation while deciding a petition filed by an advocate of Lahore, Mohammad Mushtaq Chauhan, who was as assessee in circle 16, Gujranwala.

The complainant prayed to the Ombudsman that his pending assessments for three years — 1999-2000 to 2000-2002 — may be ordered to be completed in the light of the assessment year 1998- 99.

The petitioner has alleged that he was an advocate of Lahore High Court and was practising at Gujranwala for the last 25 years and was assessed in circle 16, Gujranwala.

According to details given in his petition, return of income filed by him for the year 1998-99 along with the admitted tax liabilities at Rs2,060 was not accepted as it was selected for total audit.

Being a no accounts case, the assessing officer rejected the declared version at Rs72,000 and estimated the income at Rs121,050, creating an additional tax demand at Rs3,554, which was also deposited by him.

He contested the assessment order before the commissioner income tax (Appeals) at Gujranwala, who confirmed the receipts estimated from private practice at Rs175,000 and ordered deletion of Rs12,050 receipts from Evacuee Trust Properties Board, as covered under estimate of receipts from private practice at Rs175,000. The rest of treatment meted out by the assessing officer was confirmed.