Law: Income Tax Ordinance, 2001

Section: 120(1),122(5A),122(9),133(1),231A

(a) Income Tax Ordinance (XLIX of 2001)---Ss. 122(5A) ,  133(1)--Amendment of assessment--Preconditions-- Amendment of assessment under S.122(5-A) of Income Tax Ordinance, 2001 can be made only in cases where twin conditions namely, (i) Assessment Order is erroneous; and (ii) it is prejudicial to the interest of revenue, are satisfied--If one of the two pre-requisites is absent i.e. if Assessment Order is not erroneous but prejudicial to revenue or if it is erroneous but not prejudicial to revenue, recourse cannot be had to S.122(5A) of Income Tax Ordinance, 2001 and it cannot be invoked to correct each and every type of mistake or error in Assessment Order-- Incorrect assumption of facts or incorrect application of law satisfies requirement of order being ‘erroneous’--Phrase ‘prejudicial to interest of revenue’ has to be read in conjunction with erroneous Assessment Order--Every loss of revenue as a consequence of Assessment Order cannot be treated as prejudicial to interest of revenue--When Assessment Order is based on one of the courses permissible in law and it has resulted in loss of revenue or where two views are possible and view taken in Assessment Order is the one with which Commissioner does not agree, it cannot be treated as erroneous order prejudicial to the interests of revenue, unless view taken in Assessment Order is unsustainable in law. Galaxo Laboratories Limited v. Inspecting Assistant Commissioner of Income Tax and others 1992 PTD 932; Messrs S.N.H. Industries (Pvt.) Ltd. v. Income Tax Department and another 2004 PTD 330; Commissioner Inland Revenue, Zone-I, LTU v. MCB Bank Limited 2021 PTD 1367; Honda Atlas Cars (Pakistan) Limited v. Appellate Tribunal Customs, Excise and Sales Tax 2021 PTD 1806 and Caretex v. Collector of Sales Tax and Federal Excise 2013 PTD 1536 rel. (b) Income Tax Ordinance (XLIX of 2001)----Ss.120(1), 122(5A), 122(9), 133(1) ,  231-A--Reference--Amendment of assessment--Calculation of cash withdrawal and tax deduction-- Erroneous and prejudicial order--Proof--Authorities amended assessment order of respondent taxpayer on the plea that it was erroneous and prejudicial to the interest of revenue--Appellate…

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