Law: Income Tax Ordinance, 2001

Section: 122A

Income Tax Ordinance, 2001 (XLIX of 2001)-- ----Ss. 122-A--Publishing of Article--None payment of income tax by scafarers--Ex party assessment orders--Recovery of reward as informer--Lodging of claim for payment--Exercise of suo moto powers by income tax commissioner--Reward order was set-aside--Complaint before Federal Tax ombudsman--Allowed--Petition was field before H.C.--Allowed--Definite information with regard to tax evasion--Challenge to--An article was published in weekly magazine pointing out that Pakistani seafarers employed on foreign flagships are not paying income tax on their salaries--Though this was initially considered by Income Tax Officer to be sufficient to claim reward but later this decision was reversed by Commissioner of Income Tax albeit on an entirely different ground--Ex-parte assessment orders were set aside on ground that resident status of a person is prime factor in determination of his tax liability and same was not ascertainable with regard to Pakistani seafarers discharging duties on high seas beyond territorial limits of country--Demand raised in 225 cases was withdrawn and remaining cases were written off in accordance with procedure laid down in write-off of Irrecoverable Arrear Demand--It has become quite clear that where a category of persons liable to pay tax have failed to do so, merely pointing towards them would not ipso facto become definite information leading towards detection of tax evasion--whole philosophy of awarding a reward is that if on basis of some specific information income of an assessee which he has concealed through manipulation or by adoption of some deceitful mechanism comes to light through an informant, whereby tax liability of an assessee increases beyond his declared income or his declared loss stands reduced, only then such information would amount to detection of tax evasion qualifying informant to claim reward not otherwise--Appeal was allowed. THIS JUDGMENT DELIVERED BY: FAISAL ARAB, JUSTICE- In the year 1999, the respondent's article on non-payment of income tax by Pakistani seafarers discharging duty on foreign flagships was published in daily 'Takbeer'. Pursuant to such article the Income…

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