Law: Income Tax Ordinance, 1979

Section: 10(4),24,65,136

Law: Income Tax Act, 1922

Section: 23(3)

Income Tax Ordinance (XXXI of 1979)---Ss.65 , 136---Additional assessment---Exercise of authority under S.65 of Income Tax Ordinance, 1979 for additional assessment of taxpayer---Inadmissible expenditures---Scope---Question before High Court was whether income tax assessment of taxpayer, which was an insurance company, could be reopened under S.65 of Income Tax Ordinance, 1979, inter alia, on basis that amounts paid by taxpayer in taxes, including those deducted at source, were inadmissible expenditures, benefit of which could not be claimed by taxpayer---Held, that provision of S.65 of Income Tax Ordinance, 1979 was attracted when income of an assesee had either been under assessed or assessed at a lower rate or that such income had been subject to excessive relief---Assessments, in the present case, were rightly reopened as such income for assessment years in question, was under assessed and amount of taxes actually paid including tax deducted as source, had been incorrectly allowed to company as expenditures, meaning thereby that taxpayer got incorrect relief which it was not entitled to--- Reference was answered, accordingly. Messrs Home Insurance Co. Ltd., Karachi v. Commissioner of Income Tax, Companies Range III, Karachi 1992 PTD 1177; Commissioner Inland Revenue Zone-I, RTO, Rawalpindi v. Messrs Khan CNG Filling Station, Rawalpindi and others 2017 SCMR 1414; Messrs Habib Insurance Co. Ltd. v. Commissioner of Income-Tax (Central), Karachi PLD 1985 SC 109; Commissioner of Income Tax Central Zone, ‘A’ Karachi v. Messrs Phoenix Assurance Co. Ltd. 1991 PTD 1028 and Tanveer Brother Oil Dealers v. The Commissioner of Income-Tax 1990 PTD 383 ref. ORDER: IRFAN SAADAT KHAN, JUSTICE:---.--- Through this Income Tax Reference (ITR) the following question of law has been referred by the Income Tax Appellate Tribunal (ITAT) through R.A. No.9/KB of 1993- 94 to R.A. No. 12/KB of 1993-94. The assessment years under question are assessment years 1972-73, 1977-78, 1978-79 and 1979-80:- “Whether on the facts of the case the learned Tribunal was justified in confirming the order of the learned CIT(A) by following the decisions reported as 1992 PTD 1177 which is not attracted…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492