Law: Income Tax Ordinance, 1979

Section: 59,65

Income Tax Ordinance (XXXI of 1979)---Ss. 65 & 59---Self-assessment---Discrepancies in the statement of accounts and claim made by assessee existed and Income-tax Officer at no stage had applied his mind and passed conscious order after examining the record--¬Income-tax Officer had obtained information subsequently from the record which he did not have at the time of making the assessment under S. 59 of the Ordinance nor he had applied his mind and determined said facts---Income-tax Officer thus, had the jurisdiction to issue notice under S. 65 of the Ordinance to the assessee in circumstances. Edulji Dinshaw Ltd. v. The Income-tax Officer 1990 PTD 155; Chapple Builder's case 1990 PTD 1962 and Messrs Arfat Woollen Mills Ltd. v. The Income-tax Officer, Companies Circle C-1, Karachi 1990 PTD 338 ref. JUDGMENT SALEEM AKHTAR, J.---The petitioner has challenged the validity of notice under section 65 of the Income Tax Ordinance issued by the respondent in respect of assessment years 1986-87 and 1987-88. The petitioner is a proprietary concern and is engaged in the business of construction and engineering. The petitioner submitted the return of income-tax for assessment years 1986-87 and 1987-88 under the Self-Assessment Scheme. In the assessment year 1986-87 it declared the income of Rs.5,04,987 and in 1987-88 Rs.40,29,974. The petitioner claimed immunity from total audit in respect of both these assessment years. It has been alleged that alongwith the return of income-tax the petitioner submitted all the required and requisite documents like wealth statement, statement of account and supporting evidence in the light of self-assessment scheme and the circular issued by the Central Board of Revenue. The respondent issued notice under section 61 of the Income Tax Ordinance to which reply was sent by the petitioner. Final assessment order was made under section 59(1) in respect of assessment year 1986-87. For the assessment year 1987-88 the respondent also passed order on 4-11-1987 and accepted the declared income. The respondent issued letter dated 4-11-1987 expressing his intention to invoke section 65 of the Income Tax Ordinance separately for the both the…

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