Law: Income Tax Ordinance, 2001

Section: 129,161,161(1A),205

Failure to pay tax collected or deducted---Scope---Assessing officer issued notice to the taxpayer under Ss.161(1A) 205 of Income Tax Ordinance, 2001, for its failure to deduct withholding tax---Taxpayer was declared to be in default of tax deduction---Commissioner (Appeals) remanded the matter for de novo consideration---Assessing officer had confronted the whole amount appearing in the return of income of taxpayer without establishing that these were all payments---Neither the assessing officer had pointed out specific default in terms of S. 161 nor identified names and addresses of the parties from whom and how much tax was to be deducted---Commissioner (Appeals) had rightly held that the impugned order was passed without following statutory provisions and without properly considering the contentions of the taxpayer---Appeal was dismissed. (b) Income Tax Ordinance (XLIX of 2001)---S. 129---Decision in appeal---Scope---Section 129 of Income Tax Ordinance, 2001, has two shades: In case of an appeal against an assessment order the Commissioner (Appeals) may confirm, modify or annul the order whereas in any other case, the Commissioner (Appeals) may make such order as he deems fit---Words confirm, modify and annul used in S. 129(1)(a) confine and limit the power of the Commissioner (Appeals) to decide an appeal against an assessment order---Legislature has specifically inserted these words specifying the powers of Commissioner (Appeals) to exclude any other way of disposal of appeal against assessment orders, hence, it is clear from the plain language of S. 129(1)(a) that Commissioner (Appeals) is not vested with power to remand a case where the appeal is against an assessment order and he can only confirm, modify or annul the assessment order of assessing officer---Against an order other than assessment order, the Commissioner (Appeals), in case of appeal may pass an appropriate order as he thinks fit. (c) Words and phrases---As it deems fit---Meaning---Scope---Expression as it deems fit means to make an order in terms of the statute, an order which would give effect to a right which the Act has elsewhere conferred. Babulal Nagar v. Shree Synthetichs Lt., AIR…