1995 P T D 399
[Lahore High Court]
Before Ahmad Saeed Awan, J
Messrs AZIZ BOOK DEPOT, LAHORE
versus
INSPECTING ADDITIONAL COMMISSIONER OF
INCOME-TAX, LAHORE and another
Writ Petition No. 12054 of 1994, announced on 28th November, 1994.
Income Tax Ordinance (XXXI of 1979)--
----Ss. 59 & 54---Self-Assessment Scheme (1993-94), para.1(f)---C.B.R. Circular No.9 of 1993, para.l(f)---Return filed by assessee under Self- Assessment Scheme---Payment of total tax according to the declared income under S.54 of the Income Tax Ordinance, 1979 is precondition and mandatory to qualify for immunity from detailed scrutiny under Self-Assessment Scheme-- Self-Assessment Scheme (1993-94) does not allow the assessee to claim adjustment of earlier year's refund while submitting the return under the scheme.
Latif Ahmad Qureshi for Petitioner.
Shahbaz Butt for Respondents.
ORDER
The petitioner, Aziz Shah Bokhari proprietor Messrs Aziz Book Depot, Urdu Bazar, Lahore filed his income-tax return for the year 1993-94 under Self- Assessment Scheme claiming immunity from detailed scrutiny. The demand according to the declared income amounting to Rs.11,717, was payable under section 54 of the Ordinance. The petitioner instead of depositing Rs.11,717 under section 54 of the Ordinance for the said year; deposited Rs.2,633 and claimed refund of Rs.9,084 due for the year 1990-91 to be adjusted against the demand for the year. 1993-94 and to be considered as paid under section 54 with the return.
2. Respondent No, vide his Letter No.1146131/303 dated 14-9-1994 rejected petitioner's claim that his return of income for the assessment year 1993-94 qualified for acceptance under Self-Assessment Scheme being immune from detailed scrutiny. Respondent No. 2 also rejected the representation of the petitioner against respondent No. 1's is order dated 14-9-1994; hence this writ petition.
3. Learned counsel contended that the petitioner's return of income for the year 1993-94 fulfilled all conditions of the said Scheme including the condition of immunity from total audit as the payment of tax amounted higher by 20% as compared to the maximum tax payable in any of the preceding three years. Learned counsel for the respondents admitted that indeed the return of total income was filed by the petitioner within time and all the requirements were fulfilled except that of payment of tax required to be made under section 54 of the Income Tax Ordinance, 1979 i.e. admitted tax liability was not fully paid; hence notice under section 61 of the Ordinance was issued to the petitioner.
4. I have heard learned counsel for the parties at length and have gone through the record with their able assistance:
5. Circular No. 9 of 1993 (Income Tax) Government of Pakistan C.B.R., dated 1st July, 1993 prescribed certain disqualifications for acceptance of returns under the Self-Assessment Scheme of the assessment year 1993-94 and according to clause 1(f) "returns where tax payable with the return under section 54 of the Income Tax Ordinance, 1979 is not fully paid" has been excluded from the sphere of Self-Assessment Scheme, even the return may fulfil other conditions to claim immunity from detailed scrutiny.
6. It was held in case Shoaib Bilal Corporation, Faisalabad v Commissioner of Income Tax, Faisalabad and another 1993 PTD 332.that where the assessee had not paid the total amount of tax with the return under section 54, did not entitle the I.T.O. to deny the immunity of self-assessment from detailed scrutiny. The learned Judge also observed in the supra judgment:
"It is to be noticed that there was no provision in the Self-Assessment Scheme in the year 1987-88, providing for the loss of immunity from the total audit in case of failure to pay the exact amount of tax due, although such a provision does not exist in the Scheme for subsequent years."
7. I am of the opinion that prima facie in the light of the above observation and qualifications laid down by Circular No. 9 for acceptance of a return for the year 1993-94 under the Self-Assessment Scheme; it is pre condition and is mandatory to pay the total tax according to the declared income under section 54 of the Ordinance. In the present case the petitioner has not fulfilled the mandatory provisions of Self-Assessment Scheme by depositing amount under section 54 of the Ordinance and the Scheme does not allow to claim adjustment of earlier years refund while submitting the returns under the Self-Assessment Scheme. In the result the petition has no merit and is hereby dismissed.
M.B.A./A-735/L Petition dismissed.