Law: Income Tax Ordinance, 1979

Section: 59(b),59B(1)

Law: General Clauses Act, 1897

Section: 21

(a) Income Tax Ordinance (XXXI of 1979)--- ----S. 59-B---General Clauses Act, (X of 1897), S.21---Simplified Assessment Procedure Scheme ---C.B.R. Circular No.19 of 1988, dated 5th October, 1988--- Principle of locus poenitentiae---Power to amend Notification---Extent---Effect of amendment on vested right---Validity of such amendment and its applicability ---Assessee was partner of a registered firm which was dissolved on 30-6-1987 and assessee took over its business ---Assessee filed two Returns under Simplified Assessment Procedure Scheme---Income-tax Officer, treating the case of assessee as that of succession, excluded the Returns from the Scheme on the strength of C.B.R. Circular No.19 of 1988 issued on 5-10-1988 which provided that where a partner of a firm took over the business of an existing firm it would be a case of succession and if the last assessed income of the firm exceeded Rupees one lac the case of successor shall fall outside the scope of Simplified Assessment Procedure Scheme ---Assessee challenged the exclusion of his case from the Scheme first before Commissioner of Income­tax and then before Tribunal on the ground that when the C.B.R. had notified the Scheme under S.59-B of the Ordinance and the assessee having fulfilled all the conditions, had filed Returns under that Scheme, the C.B.R. subsequently had no power to modify or amend the earlier Circulars to his detriment---Held, power of C.B.R. to modify, amend or rescind any of its earlier Notifications under S.21 of General Clauses Act is not unqualified and unlimited inasmuch as where a right is created in favour of an individual that cannot be taken away by amending the Notification etc. under the rule of locus poenitentiae. Venktech Yesheant v. M. Preb A I R 1938 Nag. 513; Shahbaz v. The. Crown P L D 1956 FC 46; Mahboob Rabbani v. The Government of West Pakistan P L D 1963 Lah. 53; Mardan Industries Limited v. Government of Pakistan P L D 1965 Pesh. 47; Sh. Fazal Ahmed v. Raja Ziaullah Khan P L D 1964 SC 494; Pakistan v. Muhammad Himayatullah Farukh P L D 1969 SC 407; Black's Law Dictionary and 1990-P T D (Trib.) 988 ref. (b) Income-tax Ordinance (XXXI of 1979)--- ----S.…

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