| Citation(s) |
|---|
| 1974 SLG 3041 = 1974 SLD 3041 = 1974 PLD 310 |
Supreme Court of Pakistan
Civil Appeals Nos. K-41 and K-42 of 1972, decided on 8th May 1974.(On appeal from the judgments and orders of the former High Court of West Pakistan, Karachi Bench Karachi, dated the 30th October 1968, in Civil Reference No. 6 of 1965 and No. 8 of 1968).
Presented By: Hamoodur Rahman, C. J., Waheeduddin Ahmad and Muhammad Gul, JJ
Ali Athar, Advocate Supreme Court instructed by Ali Akbar, Advocate -on-Record for Appellants (in both the Appeals). S. A. Nusrat, Advocate Supreme Court instructed by Mujahid Hussain, Advocate-on-Record for
Respondents (in both the Appeals).
Civil Appeals Nos. K-41 and K-42 of 1972, decided on 8th May 1974.(On appeal from the judgments and orders of the former High Court of West Pakistan, Karachi Bench Karachi, dated the 30th October 1968, in Civil Reference No. 6 of 1965 and No. 8 of 1968).
Presented By: Hamoodur Rahman, C. J., Waheeduddin Ahmad and Muhammad Gul, JJ
Ali Athar, Advocate Supreme Court instructed by Ali Akbar, Advocate -on-Record for Appellants (in both the Appeals). S. A. Nusrat, Advocate Supreme Court instructed by Mujahid Hussain, Advocate-on-Record for
Respondents (in both the Appeals).
Civil Appeal No. K-41 of 1972 MESSRS DADA LTD.-Appellants
VERSUS
COMMISSIONER OF INCOME-TAX-Respondent AND Civil Appeal No. K-42 of 1972 MESSRS MUHAMMAD IBRAHIM & Co.-Appellants versus COMMISSIONER OF INCOME TAX-Respondent
Law: Business Profits Tax Act, 1947
Section: 11(1)
Law: Income Tax Act (XI of 1922)
Section: 22(2), 34
(a) Business Profits Tax Act (XXI of 1947) S. 11(1) read with Income-tax Act (XI of 1922), S. 22-Notice Words "during the previous year" in S. 22(2) of Act XI of 1922 Effect : Notice under S. 22(2) valid only if given within immediately following year-Word "any" in S. 11 (I) of Act XXI of 1947-Shows that notice can be given at any time. A comparison of section 22 of the Income-tax Act and section 11 of the Business Profits Tax Act will show that in subsection (2) of section 22, the words are "during the previous year", whereas in subsection (1) of section 11, the corresponding words are "any chargeable accounting period specified in the notice". The effect of the words "during the previous year" is that a notice under this subsection is valid only if given within the immediately following year. The word "any" in subsection (1) of S. 11 is important and that shows that a notice can be given at any time. (b) Business Profits Tag Act (XXI of 1947) S. 11(1) read with Income-tax Act (XI of 1922), S. 34-Escapement of income-Words "escaped assessment in S 34 of Act XI of 1922 -Mean evasion, or elusion, or accidental or inadvertent omission-No such evasion etc. having happened, failure to initiate proceedings under S. 11(1) of Act XXI of 1947 within accounting chargeable year would not amount to escapement of income. The contention that failure to initiate proceedings under section 11 (1) of the Business Profits Tax Act within the accounting chargeable year amounts to escapement of income is not well founded. The words `escaped assessment' in section 34 of the Income-tax Act means to evade or to elude or an accidental or inadvertent omission. In the present case, no such thing has happened and, therefore, it is not a case of escapement of income. (c) Business Profits Tax Act (XXI of 1947) S. 11 (1) read with Income-tax Act (XI of 1922), S. 34-Notice - Notice in proceedings initiated under S. 11 (1) of Act XXI of 1947 - Can be issued within reasonable time after termination of accounting chargeable year-Reasonable period should not however extend beyond period specified in S. 34 of Act XI…