Law: Income Tax Ordinance, 1979

Section: 13(2),62,13(1),13,4,132(1)(a)(i),65

(a) Income Tax Ordinance (XXXI of 1979)----Ss. 13(2) & 62---Addition---Deemed income ---Notice---Requirements--¬Specific notice under S.13(2), Income Tax Ordinance, 1979 was required to be served and notice under S.62 of the Ordinance would not fulfil the legal requirement---Intention of law, however, will be served if an assessee is confronted with the function of the knowledge of the Revenue that any one or more of elements as detailed in S.13(1) of the Ordinance exist and its expression of intention that a particular sum or sums are to be taken as deemed income by determining or assigning a value on them---Reliance on principle of natural justice---Effect---[1994 PTD 123; I.TAs. Nos.449 to 451/IB of 1986-87 and (1981) 127 ITR 453 dissented from.].A specific notice under section 13(2) of the Income Tax Ordinance, 1979 was required to be served and that the one issued under section 62 of the said Ordinance did not fulfil the legal requirement.Provisions of section 13, Income Tax Ordinance, 1979 are not machinery provisions as such which speak only of seeking explanation in subsection (1) and of a reasonable opportunity under subsection (2). Whether or not a reasonable opportunity was allowed will largely depend upon facts of every case. It is however, clear that mentioning of section 13 or its sub-clauses as title of a notice or notices is not at all required. The intention of law will be served if any assessee is confronted with the factum of the knowledge of the Revenue that any one or more of elements as detailed in subsection (1) of section 13 of the Ordinance exist and its expression of intention that a particular sum or sums are to be taken as deemed income by determining or assigning a value on them.Where reliance is placed only on natural justice or audi alteram partem, then if at one stage or the other the aggrieved person had been given a fair opportunity of representing his view point the defect in the initial order may be deemed to have been cured. If the statutory provision for notice be of mandatory nature then the order would be wholly void. But if there be no such provision or the provision be of directory nature then wherever a violation…