Law: Income Tax Ordinance, 2001

Section: 122,122(5A)

Income Tax Ordinance (XLIX of 2001)---S. 122(5A)---Income Tax Ordinance (XXXI of 1979), S.66-A---Amendment of assessment---Profit and loss account additions---Invoking of S.122(5A) of the Income Tax Ordinance, 2001 was upheld by the First Appellate Authority on the ground that assessee was not able to justify the admissibility of the expenses on legal and factual grounds during the assessment proceedings with the help of books of accounts and other supporting documentary evidence---Validity---Action on the part of Assessing Officer to have allowed expenditure which was not genuine did result in passing of an assessment order which was "prejudicial to the interest of Revenue" as the Revenue was deprived of the legitimate tax due from the assessee, and at the same time the Assessing Officer, probably due to lack of experience, was not able to appreciate the facts of the case in view of which the order passed by him was also erroneous---Two conditions co-existed, the action on the part of the Commissioner by invoking S.122(5A) of the Income Tax Ordinance, 2001 was justified in the ambient circumstances of the case---Assessee's appeal was dismissed accordingly. (1968) 18 Tax 2 (H.C. Dacca) and 1969 SCC 335 rel. (b) Income Tax Ordinance (XLIX of 2001)--- ----S. 122(5A)-Amendment of assessment---Prejudicial to the interest of Revenue---If due to an erroneous order of the Income Tax Officer, the Revenue is losing tax lawfully payable by a person it will certainly be prejudicial to the interest of Revenue. (c) Income Tax Ordinance (XLIX of 2001)--- ---S. 122(5S)---Amendment of assessment---Loss of revenue---Erroneous order---Order when erroneous/prejudicial to the interest of Revenue---Every loss of revenue as a consequence of order of. the Income Tax Officer could not be treated as prejudicial to the interest of Revenue---When the Assessing Officer adopted one of the courses permissible under the law and it had resulted in loss of revenue or where two views were possible in law and the Assessing Officer had taken one view with which the Inspecting Additional Commissioner did not agree, it could not be treated as a `erroneous' order prejudicial to the interest of…

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