Law: Income Tax Act, 1922

Section: 43,43B

[Income Tax Act, 1922 (XI of 1922)]......Section 43-B (as amended by Finance Act, 1973)-Statute-Retrospective operation--Retrospectivity no expressly provided in amended provision of Section 43-B Retrospective operation resulting inconvenience or justice to the subject-Whether provision can be applied retrospectively--Held no. Cases referred to:- State v. Muhammad Jamil (P.L.D. 1965 S C 681 ; Pakistan Gum and Chemicals Ltd. v. Chairman, Karachi Municipal Corporation (PLD 1975 Kar. 495 and Adnan Afzal v. Captain Sher Afzal (PLD 1969 S G 167. B. Income Tax Act, 1922 (XI of 1922)-Section 43B (as amended by Finance Act, 1973)-Recovery of tax-Private limited company Liquidation-Recovery of arrears of fax pertaining to the period before the provision of Section 43 B was amended-Recovery from the Director-Whether opportunity of hearing should be afforded to the Director under the unamended provision to show that no neglect, misfeasance or breach of duty could be attributed to him for non-recovery of the amount-Held yes-Even otherwise, whether the Director had a right to be heard under the rule of natural justice as he was burdened with the liability of another legal entity- Held yes-Recovery order without opportunity of hearing Whether without lawful authority and of no legal effect-Held yes. Cases referred to:- Commissioner of Income Tax v. Fazlur Rahman (P L D 1964 S C 410) ; (1964) 10 Taxation .9(S.C ); Province of East Pakistan v. Noor Ahmad (PLD 1964 S C 45I) and Atta Muhammad Quershi v. Settlement Commissioner (P L D 1971 S C 61). ORDER The petitioner was a share-holder of Lyallpur Jhang Transport Company Limited. The Company was assessed to income tax in the sum of Rs I,15,440 for the assessment year 1262-63 and to Rs. 2,03,200 for the year 1966-67. 2. On 25th April, 1977, the Board of Revenue, on the initiation of the Income lax Officer, accorded approval under Section 43-B as amended, for as action for recovery of (ax from the petitioner, This was done without providing any opportunity of being heard to the petitioner. 3. The Income Tax Officer served a demand notice for the recovery of the two amounts on the petitioner, in his personal capacity, under…

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