Law: Income Tax Ordinance, 1979

Section: 65(3),59(1)

Law: Wealth Tax Act, 1957

Section: 17,18(f)

Law: Income Tax Act, 1922

Section: 34(1)(a),34

(a) Income Tax Ordinance (XXXI of 1979)-------S.65(3), proviso [as amended by Finance Ordinance (XII of 1982) and Finance Act (VI of 1987)]---Income-tax Officer can, since 1st July, 1987, issue notice under S. 65(1) within 5 years from the end of the assessment year in which the total income of the said income year was first assessable. (b) Income Tax Ordinance (XXXI of 1979)-------S. 65(3), proviso [as amended by Finance Ordinance (XII of 1982) and Finance Act (VI of 1987)]---Word "issued" as used in S.65(3) was equivalent to word "served".---[Words and phrases]. Banarsi Debi and another v. I.T.O. (1964) 53 ITR 100 (SC); Indu Prasad Devshankar Bhatt v. J.P. Jani, I.T.O. (1965) 58 ITR 559; C.W.T. v. Kundan Lai Bihari Lai (1975) 99 ITR 581 (SC); C.I.T. v. Smt. Klasa Devi and Smt. RukminitBai (1976) 105 ITR 479; C.I.T. v. D.V. Ghurye (1957) 31 ITR 683 and Sri Nwas v. I.T.O. (1956) 30 ITR 381 ref.ORDER Subsection (3) of section 65 of the Income-tax Ordinance, 1979, hereinafter referred to as the `Ordinance' was substituted by the Finance Ordinance, 1982 and reads as under: "(3) Notice under subsection (1) in respect of any income year, may be issued within ten years from the end of the assessment year in which the total income of the said income year was first assessable." However, the Finance Act of 1987 added proviso to aforesaid subsection and it reads: "Provided that where the said notice issued on or after the first day of July 1987 this subsection shall have effect as if for the word "10 years" the words "5 years were substituted " Thus, since 1st July, 1987 the Income-tax Officer can issue notice under subsection (1) of section 65 within 5 years from the end of the assessment year in which the total income of the said income year was first assessable. However, the A facts of this appeal revealed that the Income-tax Officer issued notice on 29-6-1987 but the same was served on the respondent on 14-7-1987. From perusal of the assessment order it appears that, the original assessment regarding assessment years 1981-82 was framed under section 59(1) of the Ordinance but subsequently while proceeding with the return for the…