Law: Income Tax Ordinance, 2001

Section: 111(1)(b),114(4),116,121,133(1),176,182, 184,186

THIS ORDER PASSED BY: ATHAR MINALLAH, JUSTICE:---.--- Through this Tax Reference the applicant/department has proposed the following question for our consideration:- "Whether under the facts and circumstances of the case, the learned ITAT was justified to annul the penalties levied under section 182, 184 & 186 of the Income Tax Ordinance, 2001, while disposing the miscellaneous application as this issue was not raised in original appeal before ITA T as well and as such no rectifiable issue arose from the order of ITAT.?" 2. The facts, in brief, are that the respondent is an individual assessee deriving income from property. Pursuant to an information received by the Assessing Officer notice was issued. Statutory notices under section 114(4), 116, 176 were also issued. Thereafter, notices under section 111(1)(b) & 176 of the Income Tax Ordinances 2001 (hereinafter referred to as the "Ordinance of 2001") were issued but the same were also not complied with. The assessment was, therefore, framed under section 121 of the Ordinance of 2001. Moreover, penalties were imposed under section 182, 184, & 186 ibid. The respondent preferred an appeal before the Commissioner of Income Tax/Wealth Tax (Appeals), Islamabad (hereinafter referred to as the "CIT(A)"). The latter vide Order-in-Appeal dated 31-08-2006 dismissed the appeal as having been withdrawn. The respondent filed an application for restoration of the appeal, which had been inadvertently dismissed as withdrawn. The application was accepted and the appeal was restored. The learned CIT(A) annulled the orders passed under section 121, 182, 184 & 186 of the Ordinance of 2001 vide Order-in-Appeal dated 31-03-2007. The department preferred an appeal before the Income Tax Appellate Tribunal, Islamabad Bench Islamabad. The appeal was accepted by the department vide order dated 17-06-2008 and consequently the order of the CIT (A) dated 27- 02-2007 was vacated. The respondent filed a miscellaneous application and the same was also rejected. A second miscellaneous application was filed and the same was accepted by the learned Tribunal vide order dated 13.06.2009. 3. The Assessing Officer had passed four…

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