Law: Income Tax Ordinance, 1979

Section: 111,116

(a) Income Tax Ordinance (XXXI of 1979)----Ss. 111 & 116---C.B.R. Circular No.2 of 1958, dated 11-3-1958---C.B.R. Circular No.2 of 1959, dated 21-1-1959---Penalty---Principles governing the proceedings relating to imposition of penalty under S.111. Following are the principles governing the proceedings relating to imposition of penalty under section 111 of the Income Tax Ordinance, 1979:-- (i) The assessment proceedings and penalty proceedings stand on two different footings. In a proceeding relating to assessment the onus is on the assessee to prove that income returned by him is his true income. In proceedings for imposition of penalty for concealment of income the onus is on the Department to establish that the assessee had concealed his income. (ii) The penalty proceedings are criminal in nature and the standard of proof, which is required in a criminal case, is also required to sustain the order imposing penalty. (iii) A definite finding by the I.T.O., AA.C., C.I.T. (Appeals) or the Income Tax Appellate Tribunal on the point of concealment of income or furnishing of inaccurate particulars of income is sine qua non for initiating penalty proceedings. (iv) Whenever penalty proceedings are sought to be initiated by an Assessing Officer, there should be a finding to this effect in the assessment order indicating the intention of initiating penalty proceedings. (v) The notice under section 116 should contain in clear terms the alleged act of concealment of income or furnishing of inaccurate particulars of income in clear and unambiguous- terms and such notice should contain the necessary particulars indicating the charge to be proved against an assessee. (vi) The assessment proceedings and penalty proceedings being different in nature, no penalty can be imposed merely on the basis of finding on the point of concealment in the assessment proceedings. The onus lies on the Department in the penalty proceedings to prove independently the guilty intent by showing deliberate commission or omission on the part of the assessee resulting in concealment of income or furnishing of inaccurate particulars of income, which may result in avoiding of tax if the returned…

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