AIRF HUSSAIN & SONS (TRIDEWALY) VS SECRETARY, REVENUE DIVISION, ISLAMABAD, 2008 PTD-FEDERAL-TAX-OMBUDSMAN-PAKISTAN 1825 (2006)

Income Tax Ordinance (XXXI of 1979)---

----Ss. 59(1), 56 & 63---Income Tax Ordinance (XLIX of 2001), S.122-A---Establishment of Office of Federal Tax Ombudsman Ordinance (XXXV of 2000), S.2(3)---Self-assessment---Double assessment---Ex parte assessment was made in addition to the assessment which had already been deemed to be finalized under Self-Assessment Scheme---Validity---Department admitted that return filed under Self-Assessment Scheme was in time which was deemed to have been accepted as such but at the time of making ex parte assessment evidence regarding filing of return was not available---Commissioner of Income Tax had been advised to cancel the order under S.122-A of the Income Tax Ordinance, 2001---Since grievance was being redressed by the Department, investigation was closed and file was consigned to record by the Federal Tax Ombudsman.

Muhammad Sirjees Nagi (Advisor) Dealing Officer.

Nemo for the Complainant.

Muhammad Ghias-ud-Din (D-CIT) for Respondent.

DECISION/FINDING

JUSTICE (RETD.) MUNIR A. SHEIKH, (FEDERAL TAX OMBUDSMAN).----The complainant due to rush of work filed the Income Tax Return of assessment year 2002-2003 in Circle 21, Nankana. The Taxation Officer of the Circle transferred the return to Circle 20, Muridke. Since it was under the `Self-Assessment Scheme' it would be deemed to have been as an assessment order. However, the Taxation Officer, Circle 20, Muridke issued a short document notice, dated 23-10-2002. He was requested to transfer the return to the concerned Circle but the complainant got no response. The same Taxation Officer was transferred to Circle 8, Zone-C, Lahore who issued a combined notice to the complainant in the name of "Muhammad Tariq Khan and Karyana Dealer Tridewaly" for assessment years 2001-2002 and 2002-2003 under section 56 of the repealed Income Tax Ordinance, 1979. The complainant requested the Taxation Officer to withdraw the notice for assessment years 2002-2003, but after a lapse of about one year he received the impugned order and demand notice on 23-8-2005. The complainant's grievance is that the subsequent assessment order served on him on 23-8-2005 is without jurisdiction and illegal amounting to `maladministration'. He has requested that the impugned order be declared null and void.

2. In the reply submitted by the R.C.I.T., Eastern Region, Lahore it is stated that the contention of the tax-payer regarding filing of the return is correct. He filed return under `Self-Assessment Scheme' in time which was deemed to have been accepted as such. At the time of making the ex parte impugned assessment the evidence regarding filing of return by the complainant was not available. So prima facie it is a case of double assessment. The concerned C.I.T. has been advised to cancel the impugned order under section 122-A of the Income Tax Ordinance, 2001 for assessment year 2002-2003.

3. On the date of hearing i.e. 30-12-2005 Mr. Muhammad Ghias -ud-Din (D.C.I.T.) appeared for the respondent. He submitted that the concerned C.I.T. had been advised to set aside the impugned order redressing the complainant's grievance. None appeared for the complainant, but he sent an application requesting for withdrawal of the complaint as his grievance was being redressed by the respondent. In view of this position the investigation of the complaint is closed and file consigned to' record.

C.M.A./20/FTOOrder accordingly.