Law: Income Tax Ordinance, 1979

Section: 65,65(3)(3A)

Income tax Ordinance (XXXI of 1979)---- S.65(3)(3 A) [as added by Finance Act, 1982]. Additional assessment Limitation Retrospectively of enactment procedural in nature Applicability of amendment on pending cases Section 65 of Ordinance dealing with additional assessment, held, was a machinery provision authorizing Department to take steps to determine total income of assessee or tax payable by him, as may have escaped assessment earlier Before amendment, period fixed for passing such order was 10 years from end of assessment year in which income was first assessable By amendment notice though could be issued within 10 years but order for additional assessment was to be passed within one year from end of financial year in which such notice was served Period during which after issuance of notice I. T.O. must pass order had thus been considerably curtailed Amendment, held, was procedural in nature and applied to pending cases. Koh i Noor Textile Mills Ltd. v. Commissioner of Income tax, Lahore P L D 1974 S C 284 and Commissioner of Income tax v. Eastern Federal Union Insurance Company P L D 1982 S C 247 rel. JUDGMENT AKHTAR HASSAN, J. This judgment will also dispose of Writ Petitions Nos. 1486/83, 1581/83, 2404/83, 2406/83 and 3627/83 as they all involve the same question of law, namely: whether subsection (3 A) 3f section 65 of the Income tax Ordinance, 1979, as lately introduced by the Finance Ordinance, 1982, was applicable even to pending cases of assessments. . 2. Section 65 of the Income tax Ordinance, 1979, dealing with "Additional assessment" was in effect a machinery provision authorizing an Income tax Officer to take steps to determine the total income of an assessee or the tax payable by him as may have escaped assessment earlier. It could have been done by issuance of a notice under subsection (1) of section 65, and before the amendment, the maximum period fixed A for passing order in any such exercise was 10 years from the end of the assessment near in which the income was first assessable. In other words, hitherto the issuance of notice as such did not specifically attract to itself any limitation. The ceiling of 10 years was in fact fixed only for…

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