Law: Income Tax Ordinance, 2001

Section: 114,122C,114(4),127

Income Tax Ordinance (XLIX of 2001)---Ss. 122C, 114(4) & 127---Provisional assessment---Tax year 2008---Taxpayer was an individual who owned a vehicle and was residing abroad---Proceedings were initiated by issuing notice under S.114(4) of the Income Tax Ordinance, 2001---Notice was not complied with by taxpayer---Taxation Officer estimated the fair market value of the vehicle and made addition---Taxpayer contended that S.122-C of the Income Tax Ordinance, 2001 was introduced through Amended Finance Ordinance dated 28-10-2009 and was applicable for the tax year 2010 and onward; and completion of assessment under S.122C of the Income Tax Ordinance, 2001 for the year under appeal was illegal, unjustified and without jurisdiction; and that Cl.(vi) of subsection (1) of S.114 of the Income Tax Ordinance, 2001 was introduced through Finance Act, 2009 was applicable for the tax year 2010 and onward so issuance of notice under S.114(4) of the Income Tax Ordinance, 2001 and subsequently completion of assessment under S.122C of the Income Tax Ordinance, 2001 for the tax year 2008 was illegal, unjustified and without jurisdiction---Validity---Taxpayer produced photocopy of passport showing that taxpayer was a U.K national; and produced bill of entry showing the booking of vehicle from Japan and consideration was transmitted to Japan from U.K---Assessment made was without jurisdiction because provision of S.122C of the Income Tax Ordinance, 2001 was introduced through Amended Finance Ordinance dated 28-10-2009 and was applicable for the tax year 2010 and onward---Assessment completed under S.122C of the Income Tax Ordinance, 2001 was without jurisdiction and not maintainable in the eye of law--- Order passed by the First Appellate Authority was not open to any exception and was upheld and maintained---Departmental appeal was dismissed by the Appellate Tribunal. 1999 PTD 4061; CIT v. Pakistan Tobacco Company Ltd. 1988 PTD 66; Rustam F Cowasjee and others v C.B.R and 2 others (1985) 52 Tax 123 (H.C. Kar.) and Harjina and Company (Pak) Ltd. v. CIT (1964) 8 Tax (H.C. Kar.) = 1963 PTD 867 = 1963 PLD 996 rel. ORDER MUNSIF KHAN MINHAS (JUDICIAL MEMBER).---The Department has…

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