Law: Income Tax Ordinance, 2001

Section: 18, 37, 133, 221

Income Tax Ordinance (XLIX of 2001) Ss. 18, 37, 133 & 221---Reference---Expression mistake apparent from the record ---Rectification of mistakes---Scope---Capital gain---Sale of immovable property---Commissioner Appeals corrected his earlier order wherein he treated income from sale of plot as capital gain and taxable under S. 37 (3) of Income Tax Ordinance, 2001; resultantly mistake committed by the authorities was rectified---Order passed by Commissioner Appeals was maintained by Appellate Tribunal Inland Revenue---Validity---Provision of S. 221 of Income Tax Ordinance, 2001 uses the broader expression mistake apparent from the record ---Such choice of wording reflects the Legislative intent to permit rectification of any mistake whether clerical, arithmetical, legal, or factual provided the mistake is apparent from the record---Power to rectify is not confined to narrowly defined categories but extends to any mistakes evident on the face of the record---Any limitation inferred through restrictive interpretation such as confining the scope of S. 221 of Income Tax Ordinance, 2001 to only clerical or arithmetical mistakes would amount to reading into the statute what is not stated---Commissioner Appeals or the Appellate Tribunal were legally empowered to rectify any mistake apparent from the record, including legal or factual errors, while exercising authority under S. 221 of Income Tax Ordinance, 2001---Immovable property under S. 37 (5) of Income Tax Ordinance, 2001 has expressly been excluded from capital assets ---As immovable property did not fall in the definition of capital gain therefore same was not liable to tax under S. 37 of Income Tax Ordinance, 2001 but was taxable under S. 18 of Income Tax Ordinance, 2001---Earlier order of the Commissioner was erroneous and the result of applying wrong Section of law---This was a mistake discoverable on perusal of the record and same did not require any further analysis, interference or further inquiry and investigation---Commissioner Appeals had rightly invoked his jurisdiction under S. 221 of Income Tax Ordinance, 2001, and had lawful authority for such purpose---High Court declined to interfere in the…