Law: Income Tax Ordinance, 2001

Section: 121,122,177,121(1),121(1)(d),122(1),122( 5),122(9)

(a) Income Tax Ordinance (XLIX of 2001)----Ss.122 & 121---Amendment of assessment---Section 122 and S.121 of the Income Tax Ordinance, 2001 were separate and independent; both the sections were to be applied in two different situations and could not be simultaneously applied---Section 121(1) of the Income Tax Ordinance, 2001 dealt with best assessment while S.122 could be applied for reopening the assessment only where a definite information was available or the order was erroneous and prejudicial to the interest of the Revenue---Parameters of both the sections were entirely separate. (b) Income Tax Ordinance (XLIX of 2001)--- ---Ss.122 & 121---Amendment of assessment---Simultaneous issuance of notice under Ss. 177 and 122 or 121(1)(d) of the Income Tax Ordinance, 2001---Effect. Following questions were framed for the purpose of disposal of the matter of simultaneous issuance of notice under sections 177, 122 or 121 of the Income Tax Ordinance 2001:--- (i) Whether any order under clause (d) of subsection (1) of section 12 of the Ordinance could be passed in presence of an order already deemed to have been made by the Commissioner under the provisions of subsection (1) of section 120 of the Ordinance? (ii) Whether the provisions of sections 122(1)(5) and 121(1)(d) of the Ordinance could be invoked and applied simultaneously? The conclusion drawn was as follows: (i) The initiation of assessment proceedings through simultaneous issuance of notice under sections 177 and 122 or 121(1)(d) is legally not justified and order is passed in consequence thereof being unlawful were not sustainable and ab initio void. Unless any definite information came in the hands of the assessing officer as a result of Audit carried out by him no proceedings for amendment of order under section 122 could be initiated. Similarly until the taxpayer had committed default in producing the accounts, record and other documents etc. required by the assessing officer for the purpose of assessment the provisions of clause (d) of subsection (1) of section 121 were not attracted. (ii) The provisions of section 121(1)(d) and those subsections (1) and (5) of section 122 were different in…

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