Law: Income Tax Ordinance, 1979

Section: 62,62(1),proviso

[Income Tax Ordinance (XXXI of 1979)]......Section. 62(1), proviso...Assessment on production of accounts, evidence etc.... Non-issuance of notice "effect" proceedings were cancelled by the Appellate Tribunal on the ground that proviso to S.62(1) of the Income Tax Ordinance, 1979 had very clearly mentioned about issuance of notice and confrontation on order-sheet, could not be considered as its substitute. 2007 PTD (Trib.) 345, 2006 PTD (Trib.) 2179, 2003 PTD (Trib.) 2157, 2001 PTD (Trib.) 1480 and 2001 PTD (Trib.) 2938 rel. Per Amjid Ikram Ali, Accountant Member....[Minority view]. 2003 PTD (Trib.) 2157, 2007 PTD (Trib.) 345 and 2004 PTD 441 ref. Per Javaid Masood Tahir Bhatti, Judicial Member agreeing with Khawaja Farooq Saeed, Chairperson (b) Income Tax Ordinance (XXXI of 1979)----S. 62(1), proviso...Assessment on production of accounts, evidence etc....Confrontation through order-sheet entry... Validity... Where the assessee furnished books of accounts, the accounts could not be rejected without confronting in writing through notice under S.62(1) of the Income Tax Ordinance, 1979...Notice under S.62(1) of the Income Tax Ordinance, 1979 through order sheet's entry would tantamount to no notice under S.62(1) of the Income Tax Ordinance, 1979 being mandatory requirement of law...Assessment order was cancelled in such circumstances by the Appellate Tribunal. THIS ORDER PASSED BY: KHAWAJA FAROOQ SAEED, CHAIRPERSON:------------------ In this appeal filed by the assessee a number of grounds have been taken, however, the main issue is that the assessee who was maintaining proper books of accounts was entitled to service of a notice on him before rejection of his account version. The issuance of notice in the opinion of the taxpayer as argued by the learned counsel is mandatory and its default is fatal. On facts the claim of the assessee's A.R. is that there is not even a confrontation as alleged by the Assessing Officer in his order. So far as the first issue is concerned there are already many judgments by the Hon'ble Lahore High Court including 2007 PTD 345 (Trib.). Further, this Tribunal also in a number of cases has held that non-issuance of notice makes the…

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