Law: Income Tax Ordinance, 1979

Section: 13,65,136

(a) Income Tax Ordinance (XXXI of 1979)-----S. 136---Reference to High Court---Scope---Question of academic interest---High Court declined to answer the question of academic interest--­Question referred to the High Court must have a consequence in terms of revenue either for the department or for the assessee---Where tax liability of an assessee will not be affected in one way or the other, High Court will refuse to answer the question. (b) Income Tax Ordinance (XXXI of 1979)--- ----Ss.136, 65 & 13---Reference to High Court---Scope---Change in tax liability--- Tribunal directed cancellation of reassessment by holding that reopening under S.65 of the Income Tax Ordinance, 1979 was barred by limitation---Even if it was found that the proceedings were not barred by limitation, the tax liability of the assessee will not change in any manner since on merits as well the Tribunal had found that the provisions of S.13 of the Income Tax Ordinance, 1979, which were resorted to by the Revenue after reopening. of the case, were otherwise not attracted to the facts of the case---Question referred was refused to be answered by the High Court in circumstances. THIS ORDER PASSED BY : This is a case stated by the Lahore Bench of the Income-tax Appellate Tribunal. The following question has been framed for our consideration and reply:--- "Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that mere filing of defective proceedings initiated under section 65 constitutes the passing of re-assessment order under section 65 and that the fresh Notice after making good the defects cannot be issued." 2. The facts in brief are that the original assessment in the case of the assessee-respondent, a private limited company which at the relevant time engaged itself in manufacturing and sale of Rexion cloth and imported goods, was finalized under section 59(1) of the Ordinance at an income of Rs.6,11,566. Subsequently its case was reopened on the ground that certain investments made in construction of building during the relevant assessment year i.e. 1985-86 were not disclosed. The proceeding as initiated by the issuance of a notice under…

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