Law: Income Tax Ordinance, 1979

Section: 58,108,110,136

(a) Income Tax Ordinance (XXXI of 1979)----Ss.58, 108 & 110---Wealth'statement---Non-compliance of requirement of filing wealth statement---Penalty---Validity---Penalty under S.108, Income Tax Ordinance, 1979 for default in submitting .wealth statement as required under S.58 of the said advance was not justified---Principles. Penalty under section 108 of the Income Tax Ordinance, 1979 was not exactable - for default in submitting wealth statement with return as required under section 58 of the Ordinance. Provisions of section 108 specify the default with reference to specific sections and section 58 or any of its subsections does not figure out there. Penalty provisions must be construed strictly, particularly, in fiscal matters. Section 110 of the Ordinance makes a specific reference to section 58 and also provides for a mode of calculating penalty in case of default. On the other hand, the penalties provided under section 108. are fixed and have nexus with the default in terms of days. The penalty provided under section 110 of the Income Tax Ordinance is co-related with the amount of tax which would have been avoided if the income as returned by such person had been accepted as correct income. Therefore, in presence of a specific provision of law applicable to the situation, the Assessing Officer could not have resort to any other provision of law. All the moreso when the method of calculation of amount of penalty was totally different, from the applicable provisions of section 110 of the Ordinance. (b) Income Tax Ordinance (XXXI of 1979)--- ----S.136---Reference to High Court---Scope---Question having not arising out of the order of the Tribunal, could not be referred to the High Court. THIS ORDER PASSED BY : NASIM SIKANDAR, J.---At the instance of the revenue, the Lahore Bench of the Income Tax Appellate Tribunal has referred following questions of law which are stated to have arisen out of their order recorded (i) Whether' on the facts and in the circumstances of the case the Tribunal was justified in knocking off the penalty of Rs.5,000 imposed under section 108 of the Income Tax Ordinance, for default of section 58(2) of the Ordinance. (ii) Whether…

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