Law: Income Tax Ordinance, 2001

Section: 111,111(1),120,133

Law: General Clauses Act, 1897

Section: 24-A

Law: Constitution of Pakistan, 1973

Section: 10A

(a) Income Tax Ordinance (XLIX of 2001)-------Ss. 111, 120 & 133---Constitution of Pakistan, Art. 10A---General Clauses Act (X of 1897), S. 24-A---Unexplained income or assets---Addition to income/assessment of taxpayer under S. 111 of the Income Tax Ordinance, 2001---Show-cause notice to taxpayer for such addition was mandatory---Scope---Question before the High Court was whether for invocation of an addition to income of the taxpayer to be made under S. 111 of the Income Tax Ordinance, 2001, show-cause notice needed to be issued---Validity---Section 111 of the Income Tax Ordinance, 2001 made it clear that addition to income under S. 111 of the Income Tax Ordinance, 2001 could be made only if an opportunity was provided to the taxpayer through specific notice whereby the taxpayer was confronted with any of the eventualities visualized in the said section, and if the taxpayer failed to offer any explanation about the nature and source of the amount credited or investment made, or about money or valuable articles or funds from which expenditure was made, only then such addition could be made in the income of the taxpayer---High Court observed that in view of Art. 10A of the Constitution and S. 24-A of the General Clauses Act, 1897, every public functionary, including taxation authorities were required to provide fair opportunity of being heard to any person before taking adverse action or passing any order of assessment or creating additional liability of tax, by confronting such a person with the proposed action in writing, as fair trial and right of hearing were regarded as cardinal principles of natural justice, which had to be read into every statute, even if the same had not been provided specifically therein---Reference was answered, accordingly.(b) Natural justice, principles of-------Scope---Right to fair trial and right/opportunity of hearing, were cardinal principles of natural justice which had to be read into every statute even if the same were not specifically provided therein.THIS ORDER PASSED BY: AQEEL AHMED ABBASI, JUSTICE:---.--- Through instant reference application, the applicant/department has initially proposed three questions,…

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