Law: Income Tax Act, 1922

Section: 23A

(a) Income-tax Act (XI of 1922)-----S.23-A [as substituted by Finance Ordinance (XIV of 1971), S.4(16)]--Provision of S. 23-A had not been made for providing any machinery for assessment but it clearly imposed a charge on undistributed income and was therefore of substantive nature. 1940 (8) ITR 442 and 1985 PTD 465 ref. (b) Income-tax Act (XI of 1922)--- ----S. 23-A [as omitted by Finance Ordinance (XXI of 1972), S.5(21)]---Omission of S. 23-A was not done as a remedial or curative measure. (c) Income-tax Act (XI of 1922)--- ----S. 23-A [as substituted by Finance Ordinance (XIV of 1971), S.4(16)]--¬Original order of assessment by income-tax Officer did not require to be passed after issuing a show-cause notice on the subject---In absence of any provision of issuing a notice in the enactment the requirement of principles of natural justice stood satisfied as the assesses were heard on the subject by the Appellate authorities. JUDGMENT IMAM ALI G. KAZI, J.---The applicants, a private limited company doing the business of automobiles and spare parts and running a workshop, have filed. this application under section 66(2) of the Income Tax Act, 1922 after the Income Tax Appellate Tribunal at Karachi declined to accede to their request to refer certain questions under section 66 (1) of the said Act. The facts leading to the filing of this application briefly stated are as follows:-- The Income Tax Officer, Company, Circle II, Karachi, passed an assessment order on the return filed by the applicants for assessment year 1971-72. He determined the undistributed profit of the applicants to be Rs.10,64,690 and imposed a tax of Rs.2,92,790 in terms of section 23-A of the said Act. On appeal the amount of undistributed profits was worked out to be Rs.8,18,392 and consequently tax payable was fixed at' Rs.2,25,258. As the applicants failed to pay such amount additional tax under section 45-A of the Act was levied. The applicants took their case before the Income Tax Appellate Tribunal without any success. Before the Tribunal it was contended by them that section 23-A as it then .stood was for the first time substituted in the year 1971 and omitted through Finance Ordinance…

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