Law: Income Tax Ordinance, 1979

Section: 62,136

Income Tax Ordinance (XXXI of 1979)---Ss. 62 & 136---Re-opening of assessment---Formula for computation of production achieved by assessee during relevant period---Such formula earlier confronted to assessee by predecessor Assessing Officer was changed by successor Assessing Officer by issuing fresh notice under S.62 of Income Tax Ordinance, 1979---Appellate Authority and Tribunal dismissed appeals filed by assessee---Validity---Nothing was available in law to prohibit Assessing Officer from confronting assessee with a formula proposing adoption of less electricity units to reach production as against the one proposed by his predecessor---Successor Assessing Officer had assigned a valid reason while changing earlier formula---Opinion of Tribunal that production achieved by assessee during relevant period was somewhat lesser than the one estimated by Assessing Officer would not give rise to a question of law to be considered by High Court---Answer to referred questions was refused in circumstances. ORDER By this order we intend to dispose of PTR No. 165 of 2001 and CTR No. 10 of 2002. 2. The petitioner assessee is an individual and during the period relevant to the assessment year in question viz. 1997-98 derived income from manufacturing of ingots and sarya by operating a steel mill taken on lease. As against declared net profit of Rs.3,25,000 the Assessing Officer completed the assessment at a total income of, Rs.98,75,362. Earlier the case of the petitioner was out sourced for special audit in terms of section 4(A) of the late Income Tax Ordinance, 1979. On receipt of the audit report the Assessing Officer by way of a notice under section 62 the late Ordinance expressed his intention to adopt production of ingots at 6772 M.T. by taking consumption of 1795 electric units per ton and to adopt production of re-rolling of sarya at 6169 M.T. by taking consumption of 225 electric units per ton. The basis so confronted were taken from the audit report. It appears that after issuance of that notice the Assessing Officer was transferred. His successor issued a fresh notice under section 62 of the late Ordinance in which he changed the basis suggested in the audit…

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