Law: Income Tax Ordinance, 2001

Section: 122,122(1),122(5A)

Law: Federal Tax Ombudsman Ordinance, 2000

Section: 2(3)

Law: Income Tax Ordinance, 1979

Section: 59(1),12(18)

(a) Income Tax Ordinance (XLIX of 2001)---S. 122---Income Tax Ordinance (XXXI of 1979), Ss. 59(1) & 12(18)---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Amendment of assessment---Issuance of notice under S.122 of the Income Tax Ordinance, 2001 alleging' "you have wilfully camouflaged expenditure_ _which is not legally permitted" and "you have wilfully camouflaged figures"---Notice proposed addition of an amount said to be hit by the mischief of S.12(18) of the Income Tax Ordinance, 1979 and an amount of tax paid for amnesty but not disclosed---Complainant/assessee contended that initiation of proceedings was based on `change of opinion' and on "material already available on record" thus not covered by the provisions of S.122 of the Income Tax Ordinance, 2001---Validity---Contradiction found on record was, that in the notice, dated 7-6-2004 the Assessing Officer alleged that Income was `erroneously assessed' but in the notice, dated 20-8-2004 the allegationwas changed to: "You have wilfully furnished camouflaged figures"---Department was not too sure whether it was to proceed to amend the assessment by resort to S.122(1) or S.122 (5A) of the Income Tax Ordinance, 2001---Such distinction was all the more important because after insertion of subsection (5A) through Finance Act,. 2003 in S.122 of the Income Tax Ordinance, 2001, the Central Board of Revenue issued specific instructions on 18-5-2004 that, as required by letter of law, powers under S.122(5A) of the Income Tax Ordinance, 2001 should not be delegated to the Deputy Commissioner of Income Tax but to Inspecting Additional Commissioner and that any authorization if already made to the Deputy Commissioner of Income Tax earlier, be cancelled---All the relevant evidence was available on record and no new `definite information' was obtained to lend legality to the amendment proceedings---Department failed to establish any definite evidence unearthed after the framing of the original assessment under S.59 of the Income Tax Ordinance, 1979---Proceedings were not based on bona fides and were being continued arbitrarily ignoring explanation and evidence tendered by the…

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