Law: Income Tax Ordinance, 2001

Section: 122

Law: Income Tax Ordinance, 1979

Section: 22,30,31,31(1)(b),34,66,66A,136,59,59(1) ,66,66A

Income Tax Ordinance (XLIX of 2001)-----S. 122---Amendment of assessment---Powers of Commissioner--Issuance of notice under Income Tax Ordinance, 1979---After promulgation of Income-Tax Ordinance, 2001 w.e.f. 1-7-2002 which had given powers of amendment to Commissioner of Income Tax under S.122 of said Ordinance, action under S. 66-A of (repealed) Income Tax Ordinance, 1979 on 8-7-2002 in case of assessment finalized under S.59(1) of said repealed Ordinance, was not legally tenable in the absence of saving clause---Issuance of notice under S. 66-A of repealed Income Tax Ordinance, 1979 was without jurisdiction and being illegal was recalled. JUDGMENT JAVED TAHIR BUTT, ACCOUNTANT MEMBER.---This appeal has been filed by the assessee assailing the order passed under section 66A of the Income Tax Ordinance, 1979 by the Inspecting Additional Commissioner of Income Tax. 2. Facts briefly stated are that the assessment in this case was framed under section 59(1) of Income Tax Ordinance., 1979 on 30-5-2002. The IAC examined the assessment record and observed that the computation chart appended with the return reveals difference of Rs.15,94,000 on the credit and debit side of the trading account and inferred that assessee has concealed the sales which resulted in suppression of income and, therefore, the assessment finalized under section 59(1) is erroneous insofar as prejudicial to the interest of Revenue. A show-cause notice under section 66A of the Income Tax Ordinance, 1979 was issued on 8-7-2002 for compliance on 15-7-2002. The assessee's reply was received wherein it was stated that the purchases have inadvertently been shown at Rs.3,583,000 as against Rs.1,988,000 and this happened due to rush of work at the time of filing of return and that alleged concealment of sales never occurred as the incorporated figure of purchase at Rs.3,582,000 is a clerical mistake. The IAC rejected the explanation of the assessee being unsatisfactory and. assessment finalized under section 59(1) for the assessment year 2001-2002 was cancelled under section 66A of the Income Tax Ordinance, 1979. 3. We have heard both sides and have also perused the relevant record available on file.…

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