I.T.A. NO. 91(IB) OF 1995-96 VS I.T.A. NO. 91(IB) OF 1995-96
1997 P T D (Trib.) 313
[Income-tax Appellate Tribunal Pakistan]
Before Ch. Irshad Ahmad, Judicial Member and Hamidullah Malik, Accountant Member
I.T.A. No. 91(IB) of 1995-96, decided on 21/10/1996.
Income Tax Ordinance (XXXI of 1979)---
----Ss.62 & 132---Decision in appeal---Remand---Assessing Officer, on remand, made assessment at income higher than the income originally assessed without indicating as to what mistake was committed by him in making earlier assessment by which assessee's income was computed at lesser figure---Such assessment on remand, held, was not justified.
Nemo for Appellant
Muhammad Arshad, D.R. for Respondent.
Date of hearing: 14th October, 1996.
ORDER
The assessee, a registered firm, derives income from oil and lubricants and providing carriage services. In its return of income for the assessment year 1990-91 the assessee declared its net income at Rs.55,460. The assessing officer rejected the declared version and made assessment at net income of Rs.85,000. The assessee preferred an appeal against the said assessment before the Appellate Assistant Commissioner who set aside the assessment for de. novo proceedings. On reassessment the assessing officer made assessment at net income of Rs.1,56,200. The assessee's appeal has been rejected by the Appeal Commissioner. Through this appeal the assessee objects to the order of the Appeal Commissioner on the ground that the estimate of sales and application of 12.25% G.P. rate are exorbitant and harsh. The addition out of the profit and loss account expenses particularly under the heads salary, entertainment, travelling, tanker expenses and miscellaneous are arbitrary and unjustified.
None has appeared for the assessee in spite of the fact that the notice of hearing of appeal has been despatched through registered post at the address provided by the assessee. Although the assessee has not appeared before us to contest the computation of his income made by the assessing officer but since originally the assessment was made on him at net income of Rs.85,000 it will be inappropriate to confirm higher assessment made later. The confirmation of later higher assessment would create an impression that he has been punished because he had objected to the earlier assessment. May be that the later assessment of the assessee's income is more near to his real income but since like the earlier assessment the later assessment is also based purely on estimation a reasonable man watching the reassessment proceedings would genuinely raise his eye brow that the assessee is being punished because he had objected to the assessing officer's earlier orders before the Appeal Commissioner. Thus, it would be inappropriate to confirm the later assessment. While taking this view we have eye on future and other cases. The assessing officer while making reassessment has not indicated what mistake was committed by him in making earlier assessment by which assessee's income was computed at lesser figure. The citizen should not be deterred in availing their statutory rights particularly right of appeal.
Consequently, accepting the assessee's appeal the later assessment is vacated and the assessment originally made at net income of Rs.85,000 is restored.
M.B.A./295/(Trib.) Order accordingly.