Law: Income Tax Ordinance, 1979

Section: 34,65

Income Tax Ordinance (XXXI of 1979)----S.65---Income-tax Act (XI of 1922), S.34---Re-opening of assessment under S.65, Income Tax Ordinance, 1979---Limitation---Extended time of limitation after enforcement of the Income Tax Ordinance, 1979 under S.65 could not be made applicable to assessments in respect whereof the proceedings under S.34, Income-tax Act, 1922 had already become barred by limitation---Principles. After statutory period of two years from the end of the relevant assessment year as provided for under section 34 of the late Act, 1922 had expired, vested rights had been created in the assessees. Therefore, the time limitation of 10 years as envisaged under the corresponding provision of section 65 of the Income Tax Ordinance, 1979 had no application. On the date of enforcement of the Income Tax Ordinance, 1979 on 1-7-1979 the right to re-open even the latest assessment framed for the year 1976-77 had become barred by limitation. Therefore, it was a past and closed transaction and the comparable provisions of section 65 of the Ordinance could not have been resorted to as the asses see had by that time acquired a vested right. All the moreso when there was no provision in the Income Tax Ordinance, 1979 which could directly or by necessary implication indicate application of the provisions of section 65 of the Ordinance to the time-barred cases under section 34 of the late Act of 1922. Re-assessments for the aforesaid assessment years when those had already become barred by time for the purpose of re-opening as contemplated under section 34 of the late Act, 1922, were rightly cancelled by the Tribunal. New Jubilee Insurance-Co. Ltd. v. Special Officer, Central Zone-A, Karachi and another 1990 PTD 1 and J.P. Jani, I.T.O. v. Induprasad Devshanker Bhatt (1969) 72 ITR 595 fol. JUDGMENT NASIM SIKANDAR, J.---The Lahore Bench of the Income-tax Appellate Tribunal at the instance of the Commissioner of Income-tax, Central Zone, Lahore has stated this case. The following question has been framed for our answer and reply:--- "Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the assessments for 1971-72 to 1976-77…

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