| Citation(s) |
|---|
| 2025 SLG 3854 2025 SLD 3854 = 2025 LHC 4127 = 2025 PTD 1337 = (2025) 132 TAX 431 |
Income Tax Reference No.109 of 2024
PRESENTS; (RASAAL HASAN SYED) (MIRZA VIQAS RAUF) JUDGE
Date of hearing: 02.06.2025 Applicant by: Mr. Manzoor Hussain, Advocate, alongwith Yousaf Khan, S.O. I.R Legal (HQ) RTO, Rawalpindi.
Respondent No.1 by: In person.
Commissioner Inland Revenue, Cantt Zone, Regional Tax Office, Rawalpindi
VERSUS
. Mr. Lal Faqeer & another
Law: Income Tax Ordinance, 2001
Section: 111, 122(5A), 133, 122(9), 111(1)(b), 122(1), 122, 120, 121
(a) Income Tax Ordinance (XLIX of 2001)---
----Ss. 111, 122 & 133---Unexplained income or assets, allegation of---Assessment order passed based on no response by taxpayer---Amendment of assessments--Essence and prerequisites---Initiating and concluding proceedings under S. 111 of the Income Tax Ordinance 2001 (the Ordinance) before taking any steps under S. 122 of the Ordinance, requirement of---Scope---Proceedings under S. 111 are mandatory and sine qua non before any action under S. 122 of the Ordinance--Brief facts were that the Commissioner Inland Revenue filed a reference application under S. 133 of the Income Tax Ordinance, 2001, challenging the order of the Commissioner (Appeals-I) who had annulled an earlier assessment order passed by the Deputy Commissioner Inland Revenue---Original order was based on definite information that the respondent taxpayer had acquired immovable properties worth Rs. 33 million while declaring a taxable income of only Rs. 1.25 million---Show-cause notice was issued under Ss. 122(9) and 111(1)(b) of the Ordinance, but due to the taxpayer's non-response, a tax demand of over Rs. 11 million was raised---Appellate authority allowed the taxpayer's appeal, leading the department to file the reference---Legal point for determination before the High Court was as to "Whether proceedings under S. 122(9) of the Income Tax Ordinance, 2001, for amendment of assessment could be validly initiated without the prior initiation and culmination of proceedings under S. 111 of the Ordinance?"--Held: The proceedings under S. 122(9) of the Ordinance could not be launched unless the proceedings under S. 111 of the Ordinance were initiated and completed--Before taking any steps in terms of S. 122(9) of the Ordinance, the requirement of S. 111 of the Ordinance was mandatory---As a result, the present appeal failed and questions of law raised therein were answered accordingly.
Commissioner Inland Revenue, Lahore v. Messrs Millat Tractors Limited, Lahore and others 2024 SCMR 700 rel.