Law: Income Tax Ordinance, 1979

Section: 65,166

Law: Income Tax Act, 1922

Section: 15BB,34

(a) Income Tax Ordinance (XXXI of 1979)---Ss. 65 & 166---Income Tax Act (XI of 1922), Ss. 15-BB & 34---Reassessment under S.65, Income Tax Ordinance, 1979--Limitation--Assessee-company, in the present case, enjoyed exemption from income tax under S.15-BB, Income Tax Act, 1922 for the assessment year 1971-1972---Subsequent to the completion of assessment, notice under S.65, Income Tax Ordinance, 1979 was issued by the Income Tax Officer in June, 1982, 'for the reason that the assessee had not properly utilized the reserve under S.15-BB of the Income Tax Act, 1922 and consequently, the re-assessment was framed---Record showed that no date was mentioned when the assessment under S.65, Income Tax Ordinance, 1979 was passed---Assessee being aggrieved against such action, filed appeal before the Commissioner of Income Tax (Appeals), who annulled the assessment by holding that the period during which corrective action could have been taken by the Income Tax Officer under S.15-BB, Income Tax Act, 1922, had already expired before the promulgation of Income Tax Ordinance, 1979 and that Income Tax Officer had no jurisdiction to take action under the provision of S.65 of Income Tax Ordinance, 1979 for the assessment year 1971-1972---Appellate Tribunal, on appeal, concurred with the Commissioner and referred the question of law for opinion of High Court to the effect that "whether on the facts and circumstances of the cases the learned Income Tax Appellate Tribunal was justified in holding that action under S.65, Income Tax Ordinance, 1979 was not within the time limit."--Held, since different intention appeared from the provision of S.166(2)(c) Income Tax Ordinance, 1979, and no notice under S.34, Income Tax Act, 1922 was issued within contemplated time frame, an assessment could be reopened under S.65 of the Income Tax Ordinance, 1979, however, court had to examine whether the provision of S.65 of the Ordinance, in the present case, had been correctly applied---Limitation for invocation of provision under S.65, Income Tax Ordinance, 1979 was contained in its subsection (3) which stipulated that no order under S.65(1) of the Ordinance shall be made in respect of…

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