Law: Income Tax Ordinance, 1979

Section: 13,.65,59(1)&13(1)(b),65(1)(b)

Income Tax Ordinance (XXXI of 1979)----Ss.65, 59(1) & 13(1)(b)---Reopening of assessment---Scope and extent--­Self-Assessment Scheme---Unexplained investment---Once the assessment was re-opened under S.65, Income Tax Ordinance, 1979 on one specific issue, the Income-tax Officer could reassess income from other sources for the same year even when income from other sources was previously accepted under Self-Assessment Scheme---Principles---Proceedings initiated under S.65 of the Ordinance were not restricted only to the grounds and the reasons or the material on the basis of which a notice for reopening was issued ­Such proceedings were not to remain within the four corners of the reasons given in the show-cause notice---Once the assessment had been reopened same would not be restricted to a specific head of income or a sub-head of the main head---Additional assessment could be made not only with respect to total income of the assessee but also the tax payable by him if the requirements of S.65(1)(b) of the Ordinance were answered--Additional assessment could be made and proceedings for reopening of assessment could also be initiated when either a lower rate of tax had been applied in respect of a particular head of income or excessive relief had been allowed to an assessee in relation to any claim to which he was not entitled as also for the reason that the amount of refund made was more than what was due to him--­Findings of fact that enough material was not available on record to enhance the business income, would not in any manner change the nature of the case, if the Income-tax Officer could assess income from other source in the same year when income had previously been accepted under Self-Assessment Scheme. The original assessment in the case of the assessee, an individual, was framed at total income of Rs.18,200 under section 59(1) of the Ordinance. Subsequently on the basis of a 'complaint he was served with a notice under section 65 of the Ordinance and in the proceedings that followed net income for the year was determined at Rs.38,650. In the process besides making an addition of Rs.1,00,000 under section 13(1)(b) of the Ordinance a sum of…

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