Law: Income Tax Ordinance, 1979

Section: 66A,24(c)

(a) Income Tax Ordinance (XXXI of 1979)---S.66-A---Powers of Inspecting Additional Commissioner to revise Deputy Commissioner's order---Excessive use of electricity as compared to previous year---Cancellation of assessment ---Validity--­Word "erroneous" as used in S.66-A of the Income-tax Ordinance, 1979 included prejudicial to the interest of revenue---Error be that of fact or of law, by no means could be stretched to include that with more utilization of electricity the assessee's income had increased--­Cancellation of assessment order was disapproved by the Tribunal and the order of the Assessing Officer was restored. (1997) 95 Tax 75 (Trib.) and (1984) 48 Tax 34 (H.C.A.J.K) rel. (b) Income Tax Ordinance (XXXI of 1979)--- ----Ss. 66-A & 24(c)---Powers of Inspecting Additional Commissioner to revise Deputy Commissioner's order---Non-deduction of tax on rent and commission---Cancellation of assessment ---Validity--­Assessee had deducted and paid tax in respect of rent while the commission had been paid to a person who had paid tax thereon--­Order of the Inspecting Additional Commissioner by no means could be considered as a correct appreciation of the jurisdiction .under S.66-A of the Income-tax Ordinance, 1979---Cancellation of the order was disapproved by the Tribunal and the order of the Assessing Officer was restored. 1999 PTD 2172 rel. ORDER KHAWAJA FAROOQ SAEED (JUDICIAL MEMBER).---Cancellation of order under section 66-A is challenged. The A.R. while challenging the order pointed out that the proceedings were initiated on the basis of three objections. One regarding electricity was later dropped and the order was cancelled on the basis of remaining two. He narrated the facts regarding all the issues and said that the excessive use of electricity during the year was satisfactorily explained and accepted by the IAC. He further said the other two are regarding non-deduction of tax under section 24(c) on the rent and commission paid amounting to Rs.1,50,000 and Rs.48,000 respectively. The A.R. said that the departmental objection regarding more consumption of electricity in proportionate to the previous year does not make an order as erroneous.…

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