Law: Income Tax Ordinance, 1979

Section: 13,13(1)(d),65,136

Income Tax Ordinance (XXXI of 1979)].......Ss. 13(1)(d), 65 & 136---Re-opening of assessment---Definite information-- Assessing Officer, on an information received, issued a show-cause notice to assessee suggesting that value of shop purchased by him in a particular locality was understated---Assessing Officer, after discarding submissions of assessee made in reply to show-cause notice, proceeded to make addition under S.13(1)(d) of Income Tax Ordinance, 1979---Appellate Tribunal found that assessment could not be re-opened merely because assessee had-purchased certain property, unless there was a definite information regarding understatement of investment---Issue, whether a definite information existed enabling the Revenue to re-open a case under S.65 of Income Tax Ordinance, 1979, was necessarily a question of law, all the more so when Department failed to bring home any evidence to support its view that value of the property had been understated---Mere fact that in another Commercial Centre a shop with similar area was purchased by another assessee at a higher rate would not amount to definite information enabling Revenue to re-open a case---High Court declined to entertain and rule upon said question. ORDER MUHAMMAD SAIR ALI, J.---In this further appeal under section 136 of the late Income Tax Ordinance, 1979 the Commissioner of Income Tax Zone-A, Lahore claims that following question of law arises out of the impugned order of the Income Tax Appellate Tribunal, dated 13-10-1998. "Whether on the facts and circumstances of the case, the learned ITAT, Lahore was justified in holding that the assessment could not be re-opened in terms of, section 65 of the Income Tax Ordinance and in nullifying the orders of the Departmental authorities including the first appellate authority by accepting the second appeal." 2. According to the statement of the case the respondent/assessee is a member of Association of Persons and the proceedings in his case were filed as the assessee did not earn taxable income. Subsequently…

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