Law: Income Tax Ordinance, 1979

Section: 156,66A,62,24(c),50(4),52

Income Tax Ordinance (XXXI of 1979)----Ss. 66-A, 62, 24(c), 50(4), 52 & 156---Powers of Inspecting Additional Commissioner to revise Deputy Commissioner's order--­Deductions not admissible---Liability of persons failing to deduct or pay tax-- -Assessment was finalized under S.62 of the Income Tax Ordinance, 1979---Assessee failed to deduct tax under S.50(4) of the Income Tax Ordinance, 1979 on the payments made as expenses---Assessing Officer allowed such payments as expenses but proceeded to treat the assessee as an assessee in default under S.52 of the Income Tax Ordinance, 1979 and created demand of tax on such payments ---Assessee paid such demand---Inspecting Additional Commissioner cancelled the assessment on the ground that Assessing Officer had failed to treat the payments made without deduction of tax at source as inadmissible expense under S.24(c). of the Income Tax Ordinance, 1979---Validity---When an assessee failed to make deduction of tax from certain payments under S.50(4) of the Income Tax Ordinance, 1979, the same could be disallowed as expense by the Assessing Officer under S.24(c) of the Income Tax Ordinance, 1979 but if the Assessing Officer allowed assessee's claim of expenses regarding such payments and proceeded to hold the assessee as assessee in default under S.52 of the Income Tax Ordinance, 1979 and recovered the amount of tax involved under S.52 of the Income Tax Ordinance, 1979 read with S.50(4) of the Income Tax Ordinance, 1979 then claim of such payments could not be subsequently disallowed under S.24(c) of the Income Tax Ordinance, 1979 by resorting to Ss.65, 66A or 156 of the Income Tax Ordinance, 1979--­Such was because of the fact that any income could not be subjected to income-tax twice in the hands of the same assessee in the same assessment year for the same default or reason---Once the Department exercised the option to charge amounts of certain payments to tax under S.52 of the Income Tax Ordinance, 1979 by holding the assessee as an assessee in default then the same could not be subjected to tax again under S.24(c) of the Income Tax Ordinance, 1979 for the same reason that the assessee had failed to withhold tax…

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