Law: Income Tax Ordinance, 2001

Section: 131,143,143B,221

Income Tax Ordinance (XLIX of 2001)---Ss. 131, 143-B & 221---Assessment order---Cancellation of assessment order---Appeal to Appellate Tribunal---Assessee, private limited company, filed statements under S.143-B of Income Tax Ordinance, 2001 which were deemed to be accepted as such---Assessment Officer had observed that assessee-company had received interest from the Banks and deducted tax thereon 10%, and by so doing assessee-company had failed to deduct tax by applying normal rate applicable to private limited company on interest which was 43% for assessment of first two years and 45% for next two years---Assessee, being aggrieved with the treatment meted out by the Assessing Officer filed appeal before Appellate Authority, who cancelled the order passed by the Assessing Officer under S.221 of Income Tax Ordinance, 2001 treating same to be ab initio null and void---Revenue had come up in appeal before Appellate Tribunal---Action taken by Appellate Authority/ Commissioner Income Tax (Appeals) in cancelling the assessment order for the first three years (1999-2000, 2000-01 & 2001-02) was perfectly justified because said assessments could not be rectified under S.221 of Income Tax Ordinance, 2001 after lapse of five years from passing of assessment order---Order of Commissioner Income Tax (Appeals) to the extent of said assessment of first three years, was maintained and appeal to that extent was dismissed being devoid of merits---Regarding assessment of year 2002-03, assessee/respondent had filed statement under S.143-B of Income Tax Ordinance, 2001 and tax deducted was final discharge of liability---Commissioner Income Tax (Appeals) had wrongly cancelled the order regarding assessment year 2002-03 on the grounds; that firstly, assessment completed for the assessment years 1999-2000, 2000-01, 2001-02 and 2002-03 would be deemed to have been accepted under S.59-A of repealed Income Tax Ordinance 1979 and could not be rectified under S.221(1-A) of Income Tax Ordinance, 2001; secondly order passed under repealed Income Tax Ordinance, 1979 and could not be rectified after expiry of 4 years by invoking provisions of S.221 of Income Tax Ordinance,…

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