Law: Income Tax Ordinance, 1979

Section: 65&59(1)

Income Tax Ordinance (XXXI of 1979)---Ss. 65 & 59(1)---Additional assessment---Assessment Year 1996-97--¬Assessment was finalized under Self-Assessment Scheme---Assessment was reopened on the ground that opening stock for the assessment year 1996-97 was on the higher side (different) than the closing stock for the assessment year 1995-96 while this fact was available on record at the time of assessment---Validity---Assessing Officer did not have any new material let alone a "definite information" at the time of reopening of assessment under S.65 of the Income Tax Ordinance, 1979---Reopening of assessment on the same facts was by all means change of opinion, which was not permitted under law---Original assessment was restored by the Appellate Tribunal in circumstances. 1995 PTD (Trib.) 580; 2000 PTD (Trib.) 329; 1997 PTD 1485; 1994 PTD (Trib.) 1360 and 1990 PTD 155 ref. ORDER Present appeal for the assessment year 1996-97 has been directed against the impugned order, dated 30-4-1999 passed by the learned AAC, Appeal Range, Lahore. The assessee/appellant challenged that the learned AAC was not justified in -setting aside the assessment made under section 62/65 of the Income Tax Ordinance, 1979. 2. The assessee, an individual, derives income from grinding of chilly and salt at Akbari Mandi, Lahore. Original assessment in the instant case was finalised under section 59(1) of the Income Tax Ordinance, 1979 at an income of Rs.50,000. Later on it transpired that the assessee has furnished inaccurate particulars regarding declared closing stock at Rs.40,000 for assessment year 1995-96 whereas the opening stock for 1996-97 shown at Rs.6,10,000. A show cause notice was issued to the assessee and after seeking approval of the learned IAC the case was reopened. Statutory notices under sections 65 and 58(1) were issued and duly complied with, and assessee filed return of income as before i.e. Rs.50,000. The Assessing Officer was not convinced with the declared results of the assessee so he proceeded to estimate the same at .9,00,000 adopting G.P. rate at 250. The assessee preferred an appeal before the learned AAC who vide order, dated 30-4-1999 set aside the case for…

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