Law: Income Tax Ordinance, 1979

Section: 65,13,13(1)(aa),59,59A

Income Tax Ordinance (XXXI of 1979)---Ss.65, 13(1)(aa) & 59-A---Additional assessment---Assessment was completed under S.59-A of the Income Tax Ordinance, 1979 having the information on record with regard to purchase of car and subsequently the case was reopened on the basis of same information---Validity---Action under S.65 of the Income Tax Ordinance, 1979 could-only be initiated if the department came into possession of a definite information after the, original assessment had been made or it was established that the original assessment was made without the application of mind---,Original assessment under S.59A of the Income Tax Ordinance, 1979 could only be made after applying the mind to the facts of the case and coming to the conclusion that the presence of the assessee was not required---Return having not been accepted under any deeming provision of law, Assessing Officer was not justified to reopen the assessment framed under S.59-A of the Income Tax Ordinance-1979 ---Order passed under S.65 of the Income Tax Ordinance, 1979 was annulled by the Appellate Tribunal. 1990 PTD 155 and 1997 PTD 1485 ref. THIS ORDER PASSED BY: This is the appeal of individual assessee, deriving income from retail business of paints and arises out of an order, dated 14-3-2001 recorded by the learned C.I.T.(A), Zone-5, Lahore. 2. The assessee has agitated the action under section 65 of the Income Tax Ordinance (hereinafter called the Ordinance) and also the addition made under section 13(1)(aa) of the Ordinance and the quantum of sales estimate as well as business income estimated by the departmental officials. 3. The relevant facts in brief are that the Assessing Officer passed an order under section 59(A) of the Ordinance on 25-3-1998 determining the income of the assessee at Rs.58,000. On 28-3-1998, the same Assessing Officer issued show-cause notice proposing to reopen the assessment under section 65 of the Ordinance on the ground that the assessee had purchased a car for Rs.4,00,000 as appearing in the wealth statement for which the asses­see did not have adequate resources. The assessee's contention was rejected and the case was reopened under section 65 of the…

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