Law: Income Tax Ordinance, 1979

Section: 156,66

Income Tax Ordinance (XXXI of 1979)-----S.66 A & 156 Jurisdiction of Inspecting Assistant Commissioner under S.66 A Rectification of mistake When I.T.O. invoked jurisdiction under S. 156, the assessment order, which I.A.C. revised by exercising his power under S.66 A, became subject of rectification proceedings During the pendency of such proceedings under S.156 that order could not be deemed to have been passed so as to unable, the I.A.C. to invoke his, jurisdiction under S.66 A And during pendency of proceedings under S.156 it could not be said to have attained finality and consequently the assessment order could not be said to be erroneous in so far as it was prejudicial to the interest of revenue for the simple reason that the I.T.O. could have rectified the mistake in the light of the direction of the I.A.C. which could have provided right of appeal I.A.C. by calling for the record of the proceedings pending before the I.T.O. under S.156 had deprived the assessee of his valuable right of first appeal Order of LA.C. thus could not sustain in law in circumstances. In the present ease originally the I.T.O. recorded assessment order under Section 62 of the Income tax Ordinance in the case of the assessee a private limited company carrying on construction business. Assessee had originally declared a loss of Rs. 14,00,000 with receipts of Rs. 5,82,000 and with the cost of work in progress standing at Rs. 1 1,86,130. The I.T.O. however, applying 10% GP rate 11,86,130 which was the cost of work in progress added Rs. 1,18,619.to the total income of the assessee, and thus reduced the loss to Rs. 21,567. Moreover, he also made certain add backs out of profit and accounts amounting to Rs. 26,567 and thus assessed the net income of the appellant at Rs. 5,000. Departmental record showed that the C.I.T. found that aforesaid assessment order was not made in accordance with law. He therefore, addressed a letter to his IAC with copy to the I.T.O. The I.T.O. on receipt of this letter addressed a letter to his IAC and asserted therein that he had applied GP rate of 10%r, and that net profit was mentioned in assessment order because of typing mistake. In this connection he…

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