Law: Income Tax Ordinance, 1979

Section: 65(2)

Income Tax Ordinance (XXIO of 1979)-----S. 65(2) [as amended by Finance Act (VI of 1987)]---Reopening of assessment---Provisions of S.65(2), Income Tax Ordinance, 1979 are procedural in nature---Definite information---Requirement---Approval of I.A.C. having been given some three years earlier to amendment introduced on 1st July, 1987, the change brought about in S.65(2) could not be worked back to destroy an official act done and order made in accordance with law--¬Allowing of approval by I.A.C. thus was a past and closed transaction when the amendment was introduced in 1987 which could not be taken to undo the official act already done. Central Insurance Company and others v. C.B.R., Islamabad 1993 SCMR 1232=1993 PTD 766; Assistant Commissioner of Income Tax and another v. Pakistan Herald Limited 1997 SCMR 1256; Philips Electrical Company of Pakistan Limited v. I.T.O. 1990 PTD 389; 1981 PTD 119; CIT v. Shahnawaz Limited 1993 SCMR 73; 1998 PTD (Trib.) 2113; PLD 1978 Pesh. 1; 1988 PLC 114; Srinivasulu Nidu v. Damodaraswami Nidu and others AIR 1938 Mad. 779 and Dilawar Hussain v. Province of Sindh PLD 1993 Kar. 578 ref. ORDER NASIM SIKANDAR (JUDICIAL MEMBER). ---These cross appeals in the year 1982-83 are directed against an order of the first appellate authority CIT(A), Zone-I, Lahore recorded on 30-6-1986. 2. The assessee-appellant is a public limited company and derives income from manufacture and sale of cotton yarn and manmade fibre. Original return filed for the assessment year 1982-83 disclosing income at Rs.57,00,638 (before depreciation) was accepted and an assessment accordingly made under section 59(1) of the Income Tax Ordinance on 30-6-1983. It appears that on receipt of a complaint the assessing officer made a visit to the Head Office of the assessee company on 1-2-1984 and impounded a number of books of accounts and certain other documents. A preliminary examination conducted revealed that the assessee had inflated the cost of cotton yarn purchased, machinery parts and had also made a number of manipulations in the books of accounts. For these reasons permission of the controlling officer, I.A.C. Central Zone, Lahore was sought to reopen the…

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