Law: Income Tax Ordinance, 1979

Section: 59(1),65,.74(3),72,71,9,12

(a) Income-tax Ordinance (XXXI of 1979)---Ss. 59(1) & 65--C.B.R. Letter Circular No. 1(3)IT-IV/80, dated 6-4-1981--Self¬assessment-Re-opening--Sufficient reasons--No action under S. 65 can be taken without sufficient material justifying the re-opening of the case--When approval of I.A:C. as prescribed by law had duly been obtained, objection about lack of definite evidence and the suspicion of "change of opinion" was repelled. . (b) Income-tax Ordinance (XXXI of 1979)-- ---Ss. 74(3), 72 & 71--Partnership Act (IX of 1932), S. 42--Discontinued business--Legal heirs/representatives of the deceased partner to be deemed to be an "assessee"--Duty of legal representatives/heirs to give notice to the assessing officer about the discontinuance of business and to file a return under S. 72(1)-¬Procedure for assessment of "discontinued business" stated. The provisions of section 74(3) of Income-tax Ordinance, 1979 clearly stipulate "legal heirs, representatives of the deceased shall for the purpose of this Ordinance be deemed to be an assessee." This provision creates an obligation on the legal representative (acting as an Assessee), to give a notice to the assessing Officer about the discontinuance of the business, if it had so happened, as is required by subsection (1) of section 72 and also to file a return of income under subsection (2) thereof. It was only then the assessing Officer could proceed to frame the assessment under S. 72 for a discontinued business, for the period commencing from the end of the latest income year to the date of discontinuance, which period was to be deemed to be an "income year" for the purposes of section 72. Once an assessee failed to give a notice about discontinuance of business and the assessment year (in which the date of discontinuance fell) expired, the provisions of section 72 stood ousted. There is, however no bar to complete an assessment of such short period commencing from the end of the latest income year to the said date of discontinuance even after the expiry of the assessment year- in which discontinuance took place, but, in that case, the assessment would be under section 71(1). If assessment of a discontinued…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492