Law: Income Tax Ordinance, 1979

Section: 66A,148

Income Tax Ordinance (XXXI of 1979)----Ss. 66-A & 148---Revision by Inspecting Additional Commissioner--¬Power---Extent---Cancellation of assessment on mere change of opinion--¬Validity---Loan through cross-pay order ---Genuineness---Assessee introduced loans---Assessing Officer issued notice under S.148 of the Income Tax Ordinance to the creditor for verification which was not complied with--¬Assessing Officer accepted loans as genuine on the ground that payments were made through cross pay order---Assessing Officer, applying 10% G.P. rates framed the assessment---Inspecting Additional Commissioner finding the order/assessment erroneous and prejudicial to revenue, issued notice under S.66-A, for framing the assessment afresh---Held, observations made by Inspecting Additional Commissioner were hypothetical and definitely involved a change of opinion---Merely on a change of opinion of the Higher Authority assessment framed by Assessing Officer could not be reopened under S.66-A of the Ordinance---Order passed by Inspecting Additional Commissioner could not be sustained in circumstances. ORDER TARIQ AZIZ (ACCOUNTANT MEMBER).---The abovementioned appeal has been filed by the assessee against the order of the learned Inspecting Additional Commissioner of Income Tax, Company Circle, Rawalpindi passed under section 66-A of the Income Tax Ordinance, 1979 (hereinafter called the "Ordinance"). The grounds of appeal are:--- (a) That the order of learned Deputy Commissioner is not erroneous in law or prejudicial to the interest of revenue Cancelling of order on a mere change of opinion is not sustainable; (b) that the loans were fully explained documented, genuine and through crossed cheques and fully probed; and (c) that the cost of construction declared against verifiable sales resulting in an application of gross profit rate of ten per cent is reasonable and change of application of gross profit rate without any basis or cogent reason is, a mere change of opinion and not sustainable. We have heard the learned A.R. of the assessee and the learned D.R. and the appeal is disposed of as under:--- While examining the assessment record for the year 1992-93, the…

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