Law: Income Tax Ordinance, 1979

Section: 136,136(1)

(a) Income Tax Ordinance (XXXI of 1979)---S.136---Reference to the High Court---Scope---Question of fact--­Question whether a genuine firm was in existence, was necessarily a question of fact and, therefore, did not give rise to a legal controversy. Commissioner of Income-tax, Rawalpindi v. Zamindara Flour Mills, Lyallpur 1970 SCMR 530; Krishan Flour Mills v: Commissioner for Income-tax, Bangalore (1962) 5 Tax 165 and Prem Family (Pvt.) (Specific) Trust v. Commissioner of Income-tax 1998 PTD 241 ref. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.136---Reference to the High Court---Scope---Inference of facts from proved facts was a question of fact which could be challenged only when it was not supported by any legal evidence or material and secondly, if the conclusion of fact drawn by the Appellate 'Tribunal was perverse and was not rationally possible---Existence or genuineness of a firm was normally a question of fact and, therefore, could not be a subject-matter of reference to the High Court under S.136(1), Income Tax Ordinance, 1979. Additional Commissioner of Income-tax v. Roshan Lal KuthiaIa (1977) 35 Tax 27 ref. THIS ORDER PASSED BY : NASIM SIKANDAR, J.---The, Lahore Bench of the Income-tax Appellate Tribunal has framed following question of law for our consideration and reply:--- "Whether on the facts and circumstances of the case, the learned Tribunal was justified to hold that non-production of account books could not lead to the inference that the firm was not genuine and registration could not be cancelled?" 2. According to the statement of the case, the assessee-respondent derives income from a commission agency of Pakistan State Oil for kerosene oil. For the assessment year, 1984-85 a return was filed in the status of registered firm. During the course of assessment proceedings the Assessing Officer required the assessee to produce books of accounts but the same were withheld. However, on the failure of the assessee, the Assessing Officer issued him a show-cause notice as to why its registration should not be cancelled. In absence of compliance, by way of an order, dated 30-3-1985 he proceeded to cancel the registration of the firm earlier…

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