Law: Income Tax Ordinance, 2001

Section: 111(1)(b),122(1)(5),122(9),122(8)

Law: Punjab Agricultural Income Tax Act, 1997 (I of 1997)

Section: 4A

Income Tax Ord: 2001 (XLIX of 2001) - Sections: 111(1)(b), 122(1)(5), 122(9), 122(8) - Punjab Agricultural Income Tax Act, 1997, Section: 4-A - Amendment of assessments - Filing of return by taxpayer declaring receipts, net income and also agricultural income - DCIR having Bank Statement of taxpayer in his possession, issued Show Cause Notice confronting deficiencies on basis of definite information - Amendment of assessment order on ground that taxpayer did not produce books of accounts - Charge of tax and making additions in the assessment order DCIR - CIR(A), in appeal deleted addition u/s 111(1)(b) and reduced amount of receipts - Validity - Whether Section 4-A of Punjab Agricultural Income tax Act, 1997 allows tax payer to make deductions while computing net agricultural income, but while examining bank statement, A. O. has ignored this aspect of case and presumed that entire credit entries in bank statement are supposed and undisclosed business receipts - Held yes - Whether sub-section (8) of section 122 of Income Tax Ord: 2001 clearly states that definite information includes information of sale or purchases of any goods made by taxpayer, receipt of taxpayer from services rendered or any other receipts that may be chargeable to tax under the Ordinance - Held Yes - Whether any information which creates doubt or provides reason to suspect that income or receipts have been concealed or suppressed does not form part of term 'definition' - Held yes - Whether taxpayer himself declared agricultural income in his return of income and he was not legally required to declare gross agricultural receipts in his return, which was presumed by assessing officer as suppressed business receipts - Held yes - Whether notices for initiation of proceedings u/s 122(5) were void ab-initio and of no legal effect - Held yes - Whether proceedings initiated on the basis of illegal notices and superstructure constructed thereon in shape of amended order u/s 122(1)(5) is nullity in law - Held Yes. There is no column in the income tax return for the tax year 2001 which required the taxpayer to declare gross agricultural receipts. Only a column under the heading "Exempt income/loss" is…