Law: Income Tax Act, 1922

Section: 15BB

Law: Income Tax Ordinance, 1979

Section: 65

Law: General Clauses Act, 1897

Section: 6(a)(c)

Income-tax Ordinance (XXXI of 1979)---S. 65--Income-tax Act (XI of 1922), S. 15-BB---General Clauses Act (X of 1897), S.6 (a) (c)--Income-tax Officer granted tax holiday under S. 15-BB of the Act to assessee during the assessment year 1971-1972 and in 1982 it was discovered by the I.T.O. that assessee had violated the terms and conditions of S. 15-BB of the Act and I.T.O. thus issued notice under S. 65 of the Ordinance to the assessee--Held, as far as S. 6 of the General Clauses Act, 1897 was concerned it could have come to the rescue of I.T.O. if he had discovered the violation of terms and conditions of S. 15-BB of the Act before the repeal of the Act as it was not violation of terms and conditions of S. 15-BB of the Act but the discovery thereof which gave power of add back to the I.T.O. --I.T.O., at the time of repeal of the Act, therefore, had no existing right or privilege which could fall within S. 6 (a) or (c) of the General Clause Act. 1897 in circumstances--Provisions of S. 65(3) contemplate 10 years from the end of assessment year in which the total income of the said income year was first assessable and do not lay down either a period of 4 years or the discovery as point of time from which it would start running--Notice under S. 65, therefore, should have been issued in conformity with provisions of S. 65 (3). ORDER FARHAT ALI KHAN, (CHAIRMAN). This departmental appeal is directed against the order of learned C.I.T. (A) recorded by him on 19th April, 1984 relating to assessment year 1971-72. The brief facts giving rise to this appeal are that during the assessment year 1971-72 the I.T.O. granted tax holiday under section 15-BB of the repealed Income-tax Act, hereinafter referred to as the Act, to the respondent. From perusal of section 15-BB it appears that in such case it became the duty of tile respondent to create a reserve and then utilize it as prescribed by aforesaid section. It further appears that on 1st July, 1979, the Act was replaced by Income Tax Ordinance of 1979, hereinafter referred to as the Ordinance. Let us also mention here that section 15-BB was omitted. However, sometimes in 1982 it was discovered by the I.T.O. that the…

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