Law: Income Tax Ordinance, 2001

Section: 122(5A),131,221

[Income Tax Ordinance (XLIX of 2001)].....Sections 122(5-A), 131 & 221---Amendment of order to rectify mistake---Original deemed assessment under S.120 of Income Tax Ordinance, 2001 was amended by Additional Commissioner under provisions of S.122(5-A) of the Ordinance---Successor Additional Commissioner after examination of cases record came to the conclusion that said amendment was erroneous and prejudicial to the interest of Revenue and rectified said order---Validity---Successor Additional Commissioner could not amend the first amendment order on the same issue under provisions of Ss.221 and 122(5-A) of Income Tax Ordinance, 2001---Contention of representative of the department that only computational mistake had been rectified, was not correct as successor Additional Commissioner had given a different treatment to proportion of expenses as compared to the treatment given by his predecessor Additional Commissioner in the first amendment order---Successor Additional Commissioner, in circumstances had not corrected computational mistake, but had made a substantial change in the method of proportion of expenses which tantamount to change of opinion---Action of the successor Additional Commissioner under provisions of S.221 of Income Tax Ordinance, 2001 was beyond his legal jurisdiction---Commissioner (Appeals), in circumstances, had rightly annulled order of successor Additional Commissioner. 1992 SCMR 687 = 1992 PTD 570; 1991 PTD 850; 2004 PTD (Trib.) 1104 and 2008 SCMR 204 = 2008 PTD 253 ref. ORDER This appeal has been filed by the Department against order of the learned CIT(A) vide No.56 dated 26-2-2010 for Tax Year, 2004. The grounds of appeal filed by the Department are reproduced below: (1) That the order passed by the learned Commissioner Inland Revenue (Appeals) is bad in Law and contrary to the facts of the case. (2) That the learned Commissioner Inland Revenue (Appeals) has erred in holding that the exercise of jurisdiction under section 221 of the Income Tax Ordinance, 2001 tantamount to change of opinion whereas the computation mistake was apparent from the record. (3) That the learned Commissioner Inland Revenue (Appeals) was not justified in…