Law: Wealth Tax Act, (XV of 1963)

Section: 17,35

WEALTH TAX ACT, 1963,..Sections 17-B & 35,.The past and closed transaction in a case cannot be reopened on the basis of a of a Court delivered subsequent in some other case.--(As per Muhammad Tauqir Afzal Malik, Judicial Member).--At the material time the work in progress was not included in the assets in the CAT proceedings and the case of the assessee was finalized as such. There is no provision in Wealth Tax Act to keep on changing the assessments already finalized which are past and closed transactions. In the similar circumstances, the Honourable High Court in the decision of Writ Petition No. 235 of 2002 relying on the of the Honourable Supreme Court of Pakistan cited as Income Tax Officer, Central Circle-II, Karachi and another v. Cement Agencies Ltd (PLD 1969 SC 322 gave his finding as under:-- I have gone through the cited precedent and find that the ratio of the said case is squarely applicable in the present case. In the precedent case, it was held by the Honourable Supreme Court that an interpretation placed on a statute by a Court would be applicable prospectively in future cases and such interpretation would not affect past and closed matters. Relying on the aforesaid precedent, I hold that the show-cause notice issued to the petitioner under section 17-B of the Wealth Tax Act and the impugned order, dated 31-3-2001 passed by the IAC Wealth Tax cancelling the assessments for the years 1998-99 and 1999-2000 are without lawful authority.- (As per Muhammad Sharif Chaudhry, Accountant Member, Agreeing).--I agree with the learned Judicial Member in holding that action taken by the Wealth Tax Officer in rectifying the assessment order, dated 20-2-1999 on 31-3-2001 on the basis of Full Bench decision of the ITAT, dated 30-l l-}999 is illegal and void in view of the of the Honourable Supreme Court of Pakistan reported as PLD 1969 SC 322. In this the Honourable apex Court of the country has clearly held that the past and closed transactions- in a case cannot be reopened on the basis of a of a Court delivered subsequently in some other case. This of the Honourable Supreme Court of Pakistan is squarely applicable to the instant case. Therefore, the…

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