Law: Income Tax Ordinance, 2001

Section: 111(1)(b),120,122(5A)

Law: Income Tax Ordinance, 1979

Section: 66A

(a) Income Tax Ordinance (XLIX of 2001)--- ----S.122(5-A)---Amendment of assessment---Re-assessment proceedings taken place on presumption basis confronting wrong facts to re-open the assessment tantamount to fishing enquiry---First show-cause notice issued to the taxpayer was defective as neither the assessment was erroneous nor prejudicial to the interest of Revenue---Action of amending authority was ab initio illegal as there was no proper basis for invoking provisions of S.122(5-A) of the Income Tax Ordinance, 2001---Amended assessment order as well as the order of Commissioner (Appeals) were vacated. 2017 PTD (Trib.) 1911 ref. (b) Income Tax Ordinance (XLIX of 2001)--- ----S. 111(1)(b)---Investment Tax Scheme, 2008---C.B.R. Circular No.3 of 2008 dated 1-7-2008---Investment in business---Declaration of business assets---Appellant/taxpayer, was an "Association of Persons" (AoP)---Both members of 'AoP' made investment in business and declared their business assets in wealth statements and explained the origin of sources of cash investment made in the firm---Both members had explained that they had sufficient funds which they obtained by availing Investment Tax Scheme, 2008; they had also made cash declaration, but explanation offered by both members of 'AoP', was rejected by authorities without giving any cogent reason---Authorities made huge addition of amount under S.111(1)(b) of the Income Tax Ordinance, 2001, on the ground that the assets declared by the members of AoP in the Investment Tax Scheme, 2008 were not available, to them---Validity---Both the authorities below had inadvertently mis-read the Investment Tax Scheme, 2008---Judgment which did not disclose the reasons, would be of little assistance to the appellate authority or the court---Court and appellate authority, would have to wed through the entire record for such reasons to decide, whether the decision of lower authorities was right or wrong---Impugned order was struck down by the Tribunal because no reason had been given---Orders of both the authorities below were vacated and impugned addition was deleted. 2004 PTD (Trib.) 880; 2003 PTD 1040 and PLD 2018 SC 28 ref. THIS ORDER PASSED BY: CH.…

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