Law: Income Tax Ordinance, 2001

Section: 177,121,122(5),122(3),122(9)

Income Tax Ord. 2001 (XLIX of 2001) - Sections 177, 121, 122(5), 122(3), 122(9) - Amendment of assessments - Filing of revised returns by taxpayer - Section of case for audit - Rejection of declared version of Taxpayer and framing of amended assessment by Taxation officer - Lump sum addition of 30% out of Profit and loss expenses - Dismissal of appeal by first Appellate Authority - Taxpayer contended that 30% add back out of P&L account were not sustainable as such figure was never confronted to taxpayer - He further argued that section 122(5) does not empower A.O. to estimate sales of any taxpayer, that lump sum addition was also not in conformity with law, hence liable to be reviewed - Validity - Whether whole case of Revenue hinged upon premises that since Taxpayer filed revised returns, hence department was justified to reject declared version of tax payer and frame amended assessment - Held yes - Whether law makes of section 122(3) had allowed taxpayer to file revised returns and no restriction has been imposed with regard to number of times, taxpayer could file revised turn - Held yes - Whether Section 122(5) did not empower Taxation Officer to act whimsically and similarly on basis of add backs out of P&L account too, number of s of higher legal fora as well as Tribunal have categorically held that lump sum addition out of P&L account cannot be made - Held yes - Whether impugned order passed by first Appellate Authority is vacated and amended assessment passed by Taxation officer is directed to be cancelled - Held Yes. Whole case of the Revenue hinged upon the premises that since the taxpayer filed revised returns, hence the department was justified to reject the declared version of the taxpayer and to frame an amended assessment. We have no hesitation in holding that the department and the assessing authority failed to appreciate true spirit of law as envisaged under section 122(3) of the Ordinance. It is observed that law makers of section 122(3) had allowed the taxpayer to file revised returns and no restriction has been imposed with regard to the number of times, taxpayer could file the revised return. It is further observed that nowhere…

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