I. T. AS. NOS. 1414/LB TO 1416/LB OF 1999 VS I. T. AS. NOS. 1414/LB TO 1416/LB OF 1999, 2000 PTD-INCOME-TAX-APPELLATE-TRIBUNAL-PAKISTAN 869 (1999)

Income Tax Ordinance (XXXI of 1979)---

----Ss.56 & 65---Notice for furnishing return of total income---Additional assessment---Assessing Officer issued notices under S.56 of Income Tax Ordinance, 1979 for the past three years and finalized the assessments-- Validity---Notice under S.56 of Income Tax Ordinance, 1979 could be issued for the current year only and for proceedings the past years could be initiated by issuing of notice to assessee under S.65 of the Ordinance only-- Assessment orders in pursuance of invalid notices were declared to be void and proceedings conducted were without jurisdiction.

1998 PTD 2969 irrelevant.

(1998) 77 Tax 91 rel.

Sirajuddin Khalid for Appellant.

Abdul Rauf, D. R. for Respondent.

ORDER

MUHAMMAD MUJIBULLAH SIDDIQUI (CHAIRMAN). ---(1) In all the above appeals, the first common objection is that the Assessing Officer proceeded in pursuance of combined notice under section 56 which were issued after the close of the assessment year. It has been contended that the notice under section 56 can be issued for the current year only and for the past years the assessing office can initiate proceedings by issuing notice under section 65 only.

2. It has been pleaded that the point in issue stands decided by Full Bench of the Tribunal. The leaned D.R. is not able to rebut the contention, However, he has submitted that the Honourable Balochistan High Court has held in the judgment reported as 1998 PTD 2969 that the notice under section 56 can be issued at any time. A perusal of the cited judgment shows that the question pertaining to the issuance of notice under section 56 or 65 in respect of past years was not raised in the cited case. Incidentally the second appeal out of which reference application was filed in the Honourable Balochistan High Court was heard by me at Quetta and no such question was involved in the said appeal. The observation on which the learned D.R. has placed reliance has been made in entirely different context and, therefore, it is of no help to the Department. A perusal of the cited judgment shows that the questions which were sought to be raised before the Honourable High Court under section 136(2) (as it stood before amendment) were on entirely different issues. It has already been held by Full Bench of this Tribunal at Islamabad, that the notice under section 56 can be issued for current year only and for the past years the proceedings can be initiated by issuance of notice under section 65 only. In view of admitted fact that in the three assessment years under appeal no notices were issued under section 65, therefore, it is held that the entire proceedings were without jurisdiction. The assessment orders in pursuance of invalid notices are held to be void. The appeals are allowed accordingly.

C. M. A. /M. A. K./1/Tax/Trib.) Order accordingly.