Law: Income Tax Ordinance, 1979

Section: 63

Income Tax Ordinance (XXXI of 1979)---- ----S.63---Ex parte assessment---Notice for -hearing was given for 21-1-1987 while the ex parte assessment was framed on 24-1-1987---Held, ex parte assessment finalised not on the day fixed for hearing but on a subsequent date for which the assessee had no notice was not tenable. 1981 PTD 210 fol. ORDER SARDAR MUHAMMAD ANWAR AHMAD KHAN (JUDICIAL MEMBER).---These four appeals for the assessment years 1983-84 to 1986-87 assail two separate orders of learned AA.C. Range-F, Lahore, dated 2-5-1987. 2. Brief facts giving rise to these appeals are that the assessee is a Private Limited Company deriving income from supply of scientific instruments to different institutions, colleges and hospitals. For the assessment year 1983-84 return was filed to declare the sales at Rs.6,59,802 with G.P. rate of 28.35%. In view of defects detailed in the body of the assessment order the I.T.O. rejected the declared version and estimated the sales at Rs.7,50,000 and subjected them to a G.P. rate of 35%. Not satisfied with the treatment meted out the appellant went in appeal. The A.A.C. set aside the order for de novas decision on estimation of sales. In re-assessment for non-compliance of statutory notices ex parte assessment was made and same income as before was repeated. For the assessment year 1984-85 the assessee had declared a loss at Rs.64,783. However, for the assessment years 1985-86 and 1986-87 no return was filed in spite of service of notices under section 56 and under section 61 of the Ordinance. The case was fixed a number of times but as the assessee did not bother to attend the proceedings, the J.T.O. completed the ex parte assessment under section 63 of the Ordinance and adopted the net income at Rs.1,00,000, Rs.1,50,000, Rs.2,00,000 respectively for the years 1984-85, 1985-86 and 1986­87. 3. It was contended by the learned counsel for the assessee that the ex parte assessment made for the assessment year 1983-84 is not legally sustainable in the eyes of law. It was contended that according to the I.T.O. this case was fixed for hearing on 21-1-1987 on which date no one on behalf of the assessee attended and ex pane proceedings…

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