Law: Income Tax Ordinance, 1979

Section: 55,59(1),59(4),66A,85,136(6)

JUDGMENT Shahid Jamil Khan, J:- This judgment shall decide captioned Appeal along with ITA Nos. 15, 16, 17 & 18 of 1998. Following common questions of law, in all the Appeals, are arising out of composite order dated 20.04.1998 passed by erstwhile Income Tax Appellate Tribunal ("Appellate Tribunal") :- "Whether on the facts and in the circumstances of the case the learned Income Tax Appellate Tribunal was justified to hold that action u/s 66A cannot be initiated merely due to the reason that order u/s 59(1) was not passed whereas the case stood entered in Demand & Collection Register and Demand Notice u/s 85 of the Income Tax Ordinance, 1979 was issued and served upon the assessee?" 2. Facts briefly are that an action under Section 66A of the Repealed Income Tax Ordinance, 1979 ("Repealed Ordinance") was initiated by Inspecting Additional Commissioner ("IAC"), after perusal of record relating to assessment year 1993-94, which resulted into an order. The order, under Section 66A, was assailed before Appellate Tribunal throwing challenge on very initiation of proceedings for the reason that no order of assessment was in existence. The Appellate Tribunal found, on facts, that return for relevant assessment year was filed under Section 55 availing Self Assessment Scheme ("SAS"). Assessing Officer (Deputy Commissioner) was required to pass an order in writing, under Section 59(1) of the Repealed Ordinance, however no such order was passed. Appellate Tribunal entertained the ground and held that provisions of Section 66A could not have been invoked under the circumstances. Relevant part from Appellate Tribunal's order is reproduced for facility:- "4. The parties have been heard and relevant orders perused. The first contention of the learned Counsel is that the provisions of Section 66-A of the Ordinance are not applicable in this case as no order in writing has been passed u/s 59(1) of the Ordinance. A Division Bench in Islamabad has decided an appeal hearing ITA No. 1214/LB/1995-96 pertaining to assessment year 1992-93 on 9.6.1996 wherein a similar objection of the assessee was accepted and it was held that the IAC was debarred to initiate proceedings u/s…

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