Law: Income Tax Ordinance, 1979

Section: 65,59,65(4)

(a) Income-tax Ordinance (XXXI of 1979)---Ss. 65 & 59 [amended by Finance Ordinance (XXV of 1980)-Interpretation of S.65--Assessment under Self-Assessment Scheme finalised--Re-opening-¬Immunity not a licence for evasion of tax--Notwithstanding the provision' contained in S. 65(4), Income-tax Officer is empowered to re-open a case finalised under S. 59 (1), if the conditions specified in S.65 (1) (2) are satisfied-¬Provisions of S.65 (4) are confined to the case or class of cases specified by the Central Board of Revenue only and are not attracted to re-opening of the cases by the Income-tax Officer, on his own initiative--Under the Self-Assessment Scheme the immunity has been granted from detailed scrutiny only--The immunity from detailed scrutiny is not a licence for tax evasion and no statute can give permission for tax evasion.A bare perusal of section 65 (4) shows that it does not speak of any approval by the Central Board of Revenue. It only states that the provision contained in subsection (2} shall not apply to any such case or class of cases specified by the Central Board of Revenue to which clause (c) of subsection (1) applies.Clause (c) of section 65 (1) relates to the re-opening of assessment finalised under section 59 (1) and in which no order of assessment has subsequently been made under section 65 or any other provision of the Ordinance. If the provision of subsection (4) of section 65 is read with the provision contained m clause (c) of subsection (1) of section 65 it means that for the purposes of re-opening of the cases finalised under section 59 (1) the provisions of subsection (2) shall not apply in case or class of cases as may be specified by the Central Board of Revenue. The provision of subsection (4) is; therefore, in the nature of proviso to subsection (1) of section 65. In the ordinary course a notice under section 65 (1) is to be issued subject to the provision of subsection (2) according to which the Income-tax Officer can exercise authority if he is, in possession of definite information or has obtained prior approval of Inspecting Assistant Commissioner in writing to do so. However, the effect of subsection (4) of section 65…