Law: Income Tax Act, 1922

Section: 10(2),66(1),22(3)

Income-Tax Act (XI of 1922)--- Ss. 10(2) & 22(3)--Rebate--Assessee not declaring dividends at time of filing of return-Assessee declaring dividends before assessment could; be finalized by filing revised return and claiming rebate on account of dividends declared-Income-tax Officer not allowing claim of rebate on account of dividend, as there was no omission or wrong statement in original return and dividend declared much after filing of return--Held, as assessment had not been finalized and claim for rebate made in revised return, assessee was entitled to rebate. JUDGMENT NASIR ASLAM ZAHID,J-- This application under section 66(1) of the Income-tax Act, 1922 relates to assessment tear 1;967-68 of the assessee/respon­dent. For the year in question the original return was filed by the assessee on 30-9.1967, which was later revised on 11-10-1967. This revised return was filed after adjusting profit under section 10(2)(vii) of the income-tax Act. On 26-9-1968 a second revised return was filed in which the assessee inter alia claimed rebate in super-tax at the rate of 15 per cent on distribution of dividend. The dividend was declared late in June, 1968. According to the Income-tax Officer this rebate could not be entertained if it was made by the due date for the filing of return, by which date the contents are completed and final liability is determined. The Income-tax Officer was further of the view that under section 22(3) of the Income-tax Act a revised return could only be made if there was some omission or wrong in the original return and as there was no omission or wrong statement in the original return and the dividend was declared much after the filing of return, the assessee could not claim rebate by filing the revised return. The claim of rebate on account of the dividend was disallowed. The assessee filed an appeal before the Income-tax Appellate Tribunal, Karachi Bench, Karachi. By the order of Income-tax Appellate Tribunal dated 23-8-1978 the claim of rebate of 15 per cent on dividend made by the assessee was allowed. The Commissioner of income-tax…

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