Law: Income Tax Ordinance, 2001

Section: 111(1)(b),111(2),122,176

Income Tax Ordinance (XLIX of 2001)--- ----Ss. 111(1)(b), 111(2), 122 & 176---Un-explained income or assets---Addition ought to be made in the immediate preceding year of the financial year in which discovery was made---Discovery in tax years 2007/2008---Addition in tax year 2004---Taxpayer contended that since notices were admittedly issued firstly on 15th September, 2007 and secondly on 02nd June, 2009, the relevant financial year respectively came to 2007-2008 (Tax year 2008) or financial year 2008-2009 (Tax Year 2009), the addition could have lawfully been made either in tax year 2007 or 2008 as the case may be; that consequently, the addition made in tax year 2004 was wholly unlawful for the reason that the law itself required that any such addition could be made in the immediate preceding year of the financial year in which discovery was made and that by no stretch of imagination the addition made in the tax year 2004 could be held as lawful addition and the same be deleted---Validity---Assessment was competed on 30th June, 2009 and at the relevant time the additions could only be made in the tax year immediately preceding the financial year in which the discovery was made as un-amended law was available on statute book at that time---First notice under S.111 of the Income Tax Ordinance, 2001 was issued on 15th September, 2007, which fell within the financial year 2007-2008 (i.e. Tax Year 2008)---Final notice under S.111(1)(b) read with S.111(2) of the Income Tax Ordinance, 2001 was issued on 2nd June, 2009, which fell within the financial year 2008-2009 (i.e. tax year 2009)---Date of discovery had to be reckoned from the date on which the notice under S.111(1)(b) of the Income Tax Ordinance, 2001 was issued---Taxation Officer and First Appellate Authority were not right in reckoning the date of discovery from the date of investigation letter---Date of discovery for the purposes of addition under S.111 of the Income Tax Ordinance, 2001 had to be reckoned from the date of issuance of notice under S.111(1)(b) of the Income Tax Ordinance, 2001---Addition could not lawfully be made in the tax year 2004---Orders of both the authorities below were vacated…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492