Law: Income Tax Ordinance, 1979

Section: 12,12(18),66A,59A

(a) Income Tax Ordinance (XXXI of 1979)---S. 66A---Powers of Inspecting Additional Commissioner to revise Deputy Commissioner's order---Applicability of S. 66A, Income Tax Ordinance, 1979---Inspecting Additional Commissioner could always probe into the matter and judge the exact nature of a receipt or any entry in any of the documents relating to the record of proceedings under the Income Tax Ordinance, 1979. (b) Income Tax Ordinance (XXXI of 1979)--- ----Ss. 12(18), 66A & 59A---Addition---Assessment years 1996-97, 1997-98 and 1998-99---Assessee obtained house building advance from his company being a director and employee of such company which was termed as loan by the Inspecting Additional Commissioner and made addition under S.12(18) of the Income Tax Ordinance, 1979 for three years---Validity---Inspecting Additional Commissioner failed to appreciate that the provision of S.12(18) existing at the relevant time and applicable to the income years pertaining to the assessment years under appeal was not attracted because two conditions had to be simultaneously satisfied, first, that there was a "loan" received by the assessee and, secondly, that it was, "claimed" or "shown" by him as such---Letter of law in the taxing provision of the Income Tax Ordinance, 1979 had to be interpreted in the sense in which it was used and could not be ignored as to cause injustice to the assessee---Since the two requirements of S.12(18) as it stood before its substitution through Finance Act, 1998, were not fulfilled the provision of section 12(18) was not attracted; especially when the subsequent amendment made in the year 1998 supported the assessee that at the relevant time an advance, irrespective of its nature and use, could plot be deemed as income of the assessee under S.12(18) of the Income Tax Ordinance, 1979---Provision of S.12(18) of the Income Tax Ordinance, 1979 was not applicable at the relevant time for relevant income years and the exercise of revisional jurisdiction by the Inspecting Additional Commissioner was illegal--­Impugned order was cancelled and original assessment orders were restored by the Tribunal. I.T.As. Nos. 156, 157, 158 and 167/LB of 1993-94…

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