Law: Income Tax Ordinance, 2001

Section: 21,21(c),122,122(2),122(4),151

Law: Income Tax Rules, 2002

Section: 12,12(5A)

(a) Income Tax Ordinance (XLIX of 2001)--S. 122-Amendment of assessment-Limitation-Scope-Department appealed against the order passed by Commissioner (Appeals) wherein he had deleted the disallowance of expense under S.21(c) of the Income Tax Ordinance, 2001-Taxpayer had filed its return for the year 2007 on 14-01-2008 but had later on revised its return on 16-07-2009-In the year 2008 before promulgation of Finance Act, 2009, the limitation to amend the assessment by Commissioner under S. 122(2) was five years from the date of assessment-Section 122(2) was amended in the year 2009 by virtue of which the Commissioner could amend the assessment order till the end of the fifth financial year-Taxpayer had throughout the proceedings agitated the issue of limitation-Contention of department was that since the assessment was revised by the taxpayer after the promulgation of Finance Act, 2009, on 16-07-2009, therefore, the time limitation was to be taken from the present section which was till the ending of the financial year and the assessment order under S. 122(5A) dated 30-06-2013 was within time-Validity-Limitation in the case had started from the date of filing of initial return i.e. 14-01-2008 under the then provisions of S. 122(2) which was to expire on 13-01-2013- By just filing a revised return on 16-07-2009 after the Finance Act, 2009, the limitation to amend the assessment order by Commissioner did not stand extended by virtue of that amendment and that too without any express provision in that regard-Once the assessment had attained finality at the expiry of the limitation, vested rights had accrued in favour of the taxpayer which could not be snatched away through procedural law-Assessing officer had amended the assessment order after five months beyond the time limitation- Appeal was dismissed. Additional Commissioner (IR) v. Eden Builders 2018 SCMR 991 rel. (b) Limitation--Once time begins to run from a specified date it cannot be interrupted or extended unless the legislature intervenes and makes express provisions to the contrary. PLD 1963 SC 322 ref. (c) Limitation--Object of the law of limitation is not to give a right where there is not, one but to…

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