Law: Income Tax Ordinance, 1979

Section: 11,80AA,12(5)

(a) Res judicata--- ----Doctrine of---Application---Doctrine of res judicata does not apply to the decisions of Income Tax Authorities. Doctrine of res judicata or estoppel by record does not apply to the decisions of Income Tax Authorities. A previous finding or decision of a Tax Authority can be reopened and departed from in a subsequent year if the previous decision was not arrived at after due enquiry or if fresh facts come to light which, on investigation, would entitle the officer to come to a conclusion different from the one previously reached. (b) Estoppel----- ----Doctrine of estoppel by record---Application---Doctrine of estoppel by record does not apply to the decisions of Income Tax Authorities. Doctrine of res judicata or estoppel by record does not apply to the decisions of the Income Tax Authorities. A previous finding or decision of a Tax Authority can be re-opened and departed from in a subsequent year if the previous decision was not arrived at after due enquiry or if fresh facts come to light which, on investigation, would entitle the officer to come to a conclusion different from one previously reached. (c) Income-tax--- ----Erroneous action---Such action cannot get legal sanctity with the passage of time. (d) Income Tax Ordinance (XXXI of 1979)--- ----Ss.80-AA & 12(5)---Fee for technical services---Taxability---"Technical service" ---Connotation---Assessee, a non-resident company deriving income from providing special services i.e. wireline logging, production logging, perforating logging and related services to a Pakistani Oil Drilling Company---Contention of the department was that end-product of the assessee-company was collection of specific data and its interpretation and physical activities were simply incidental to that end and that the employment of highly skilled personnel, use of sophisticated equipment by the assessee for the purpose of collecting sub-surface data and giving of expert advice was nothing but a technical service and the fees received in that connection squarely fell in the definition of "fees for technical services" in terms of Explanation to S.12(5), Income Tax Ordinance, 1979---Contract document indicated…

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