Law: Income Tax Ordinance, 1979

Section: 138,62,63

Income Tax Ordinance (XXXI of 1979)---Ss. 62, 138 & 63---Assessment---Arbitiary assessment--Net income was estimated on the basis of past history of the case and normal progressive increase to the business---Validity---Neither there was any past history nor anything in the assessment order to show that any enquiry was conducted to find out expansion in the quantum of business--Income assessed thus had no basis---Order passed by the Assessing Officer, was arbitrary and estimate of income was highly excessive--­Assessment order was to be passed judiciously even where it was passed ex parte under S. 63 of the Income Tax Ordinance, 1979---Federal Tax Ombudsman recommended that the Commissioner of Income Tax should recall the order of Assessing Officer by invoking his jurisdiction under S.138 of the Income Tax Ordinance, 1979 and allow the due relief. DECISION/FINDING It is alleged in the complaint that mal-administration is committed by Assessing officer by finalizing assessment for the charge year 2000-2001 without giving any notice of hearing and imposed tax arbitrarily and ex parte at Rs.5,050 although the assessment order allegedly passed on 22-2-2001 was served on 29-6-2001. 2. Regional Commissioner Northern Region submitted in response to the notice that assessment proceedings were initiated against the complainant on the basis of survey and returns were filed for assessment years 1997-98 and 1998-99 in response to notice under section 56 of the Income Tax Ordinance, 1979. Subsequently assessments were completed under section 62 of the Income Tax Ordinance, 1979. An unsigned return for assessment year 1999-2000 was filed by the complainant under Self-Assessment Scheme which was treated invalid and after issuance of several notices his income was assessed under normal law under section 63 of the Ordinance resulting in demand of tax amounting to Rs. 6,050. 3. The complainant did not appear on the date of hearing Mr. Haji Muhammad IAC, Jehiam stated during argument that for assessment year 1999-2000 when the assessee had declared his net income at Rs. 50,000 and paid voluntary tax alongwith the return at Rs.1,250 it was assessed at Rs.1,00,000. It was…

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