Additional assessment-

Citation Name : 2019 SCMR 158 SUPREME-COURT
Side Appellant : DEWAN KHALID TEXTILE MILLS LTD.
Side Opponent : COMMISSIONER OF INCOME TAX (LEGAL DIVISION), LARGE TAXPAYERS UNIT, KARACHI
Ss. 65(2) & 80B---Additional assessment---"Definite information"---Scope---Judgment of the Supreme Court as 'definite information'---Appellant-company filed its return for the relevant assessment year but thereafter (before the assessment was framed) filed a revised return---Reason for the revised return was that the appellant claimed that in respect of "interest or profit on which the TAX deductible under subsection (2-A) of S. 50" of the Income TAX Ordinanxe, 1979 ("Ordinance"), it was liable to be TAX ed in terms of S. 80B of the said Ordinance---Income TAX Officer accepted said claim of appellant, and the said amounts were TAX ed accordingly---However, subsequently, by a notice issued under S. 65 of the Ordinance, Income TAX Officer sought to reopen the assessment on the ground that the appellant was not so entitled--- Revised assessment order, adverse to the appellant, was made---Appellant contended that action under S. 65 of the Ordinance could only be taken if there existed any "definite information" for reopening the assessment, and that no such information existed in the facts and circumstances of the case---Appellate Tribunal accepted such contention of the appellant, however, the High Court found that the "definite information" was available with the Income TAX Officer in the form of a judgment of the Supreme Court and hence found against the appellant---Legality---High Court erroneously relied on a judgment of the Supreme Court, without appreciating that the said judgment was rendered many years after the initiation of action under S. 65 of the Ordinance against the appellant---Since the judgment did not exist at the relevant time it could not ipso facto constitute "definite information" within the meaning of law that would have made it permissible for the Income TAX Officer to reopen the assessment---Judgment of the High Court was set aside in circumstances and that of the Appellate Tribunal was restored---Appeal was allowed accordingly.


Citation Name : 2019 SCMR 158 SUPREME-COURT
Side Appellant : DEWAN KHALID TEXTILE MILLS LTD.
Side Opponent : COMMISSIONER OF INCOME TAX (LEGAL DIVISION), LARGE TAXPAYERS UNIT, KARACHI
S. 65(2)---Additional assessment---"Definite information"---Scope---Mere change of opinion by the TAX authorities did not constitute "definite information"---If the concerned authority such as an Income TAX Officer, acting on his own or under instructions from superior officers, subsequently came to a different conclusion with regard to the proper applicability or interpretation of a statutory provision that was a mere change of opinion and not "definite information".


Citation Name : 2019 SCMR 46 SUPREME-COURT
Side Appellant : GOVERNMENT OF KHYBER PAKHTUNKHWA through Secretary Local Government and Rural Development Department, Peshawar
Side Opponent : LUCKY CEMENT LIMITED
Proposed TAX ---Inviting public objection---Scope---To enable the public to meaningfully object to any TAX proposal it must first know what was proposed to be done.


Citation Name : 2019 SCMR 46 SUPREME-COURT
Side Appellant : GOVERNMENT OF KHYBER PAKHTUNKHWA through Secretary Local Government and Rural Development Department, Peshawar
Side Opponent : LUCKY CEMENT LIMITED
TAX ing statute---Drafting---Vagueness---Effect---TAX ing provisions must be drafted with clarity and precision---Uncertainty was an anathema in TAX ing provisions---Imprecision and vagueness resulted in unnecessary litigation and may also be used as a tool of exploitation.

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