Law: Income Tax Ordinance, 1979

Section: 18,18A(7),23(3),35(1)

Income Tax Ordinance (XXXI of 1979)---Ss. 18-A(7), 23(3) & 35(1)---Framing of assessment order under S.23(3) of Income Tax Ordinance, 1979 on 23-6-1973---Charging additional amount of tax under S.18-A of the Ordinance on 1-12-1977---Plea of assessee was that subsequent order of charging additional tax was a rectifying order recorded under S.35(1) of Income Tax Ordinance, 1979, which was time-barred having been recorded after four years from the date of assessment order---Appellate Authority and Tribunal upheld such plea of the assessee---Plea of Revenue was that assessment order dated 23-6-1973 was rectified and stood merged in subsequent order dated 6-5-1974, thus, additional tax charged on 1-12-1977 was not time ­barred---Validity---Order dated 1-12-1977 was an order rectifying regular assessment order having been passed after four years, thus, same was time-barred---No advantage could be taken of order dated 6-5-1974 in the present Reference Application, before the High Court as Revenue should have first agitated such point before Appellate Authority and the Tribunal---Order dated 1-12-1977 was barred by time in circumstances. JUDGMENT NASIR ASLAM ZAHID, J.---The relevant facts which led to this reference on the question of law to this Court for opinion are given in the statement of the case as follows:--- "The assessment of the respondent a private limited company, for the assessment year 1970-71 was completed under section 23(3) of the repealed Income Tax Act, on 23rd June, 1973. The income was assessed at Rs.3,36,047, capital gain at Rs.51,353 and free reserve at Rs.4,89,205. However, subsequently, on 1-12-1997 additional tax amounting to Rs.20,221 was charged under section 18A of the repealed Income Tax Act. The respondent felt aggrieved and went up in appeal. It was contended before the learned Commissioner of Income Tax (Appeals) that the order regarding additional tax recorded on 1st December, 1977, was nothing but a rectificatory order recorded under section 35(1) of the repealed Income Tax Act, and as such, it was time-barred having been recorded after four years and five months from the date of assessment order, dated 23rd June, 1973. The…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492