Law: Income Tax Ordinance, 1979

Section: 13(1)(b),30(2)(e),30(2)(2),55,56,59A,59( 1),61,62,63,65,65(1)(c),80C(4),80C(7),80 CC,80B,143B

ORDER Through these titled appeals this Full Bench proposes to dispose of an issue that culminated during the hearing of the regular appeals before a Division Bench at Islamabad. The issue under discussion was as to whether a particular amount of investment presumably chargeable as deemed income gives way to the department to initiate separate proceedings when the assesse had another source of income covered under presumptive tax regime and had filed statement under section 143B. Practically, the assessee before the court had conceded that wherever the assessee have another source of income which is not covered by presumptive tax regime, the department can initiate proceedings for normal tax assessment. The issue in his opinion that required consideration and dilation in fact was that as per facts and circumstances of the case under which provision of the Income Tax Ordinance the proceedings could be initiated under section 56 or 65. The Double Bench thought that issue is of immense importance, hence the learned Chairman constituted this Full Bench. 2. The facts of the case relevant of the issue are as follows:- (a) The assessee company is engaged in the business of construction contracts. There being no other regular source of income, a statement under section 143B is filed from year to year, including for the assessment years under question i.e. 1996-97 and 1997-98. (b) For the assessment year 1996-97, the then assessing officer (Inspecting Additional Commissioner of Income Tax Companies Range V. Islamabad) framed assessment under section 59A/80C of the erstwhile Income Tax Ordinance, 1979 through Order dated 25 February, 1997. (c) For the assessment year 1997-98 'nil' demand was created by the then assessing officer (DCIT, Companies Circle-14, Islamabad) through his Assessment Order framed on 12 November 1997 under section 59A/80C of the Ordinance. (d) During August 2001, the DCIT issued notice under section 56 of the Ordinance on the basis of information that the company had not disclosed in its balance sheet as on 30 June, 1996 & 30 June, 1997 its full value of assets. The DCIT stated for the assessment year 1996-97, assets (vehicles) were under…

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