Income Tax Ordinance 2001

  1. — section 14 — tax return — submission of — section 114 requires to furnish a return of income for a tax year — a return of income shall be in the prescribed form, fully state all the particulars/information, including a declaration of the records kept by a tax payer — it shall be signed and accompanied with evidence of payment of due tax — it shall be accompanied with a wealth statement required under section 116. Shabbir Ahmed Butt versus Chairman AJ&K Council & 4 others 2023 SCR 585 (A)
  2. — section 114 & 120 return of income — assessment order — return of income shall be taken to be complete, if it is in accordance with provision of section 114(2). Where a complete return is filed, it shall be taken for all purposes to be an assessment order — where the return of income furnished is being filed with deficiencies, the commissioner shall issue a notice u/s 120 (3), to tax payer informing him of the deficiencies and directing to provide such information, particulars etc. by such date specified in the notice — where the taxpayer fails to comply the notice u/s 120 (3), the return furnished shall be treated as an invalid return and where the tax payer fully complies with the requirements of notice by the due date, the return furnished shall be treated to be complete on the day it was furnished. Shabbir Ahmed Butt versus Chairman AJ&K Council & 4 others 2023 SCR 585 (C)
  3. — section115, 116, 117, 118 and 119 — dictates and requirements of — section 115 specifies the persons who are not required to furnish a return of income, section 116 requires the filing of wealth statement, section 117 relates to notice of discontinued business, section 118 provides the method of furnishing returns and other documents and section 119 relates to extension of time for furnishing returns and other documents. Shabbir Ahmed Butt versus Chairman AJ&K Council & 4 others 2023 SCR 585 (B)
  4. —sections 120, 122-C — provisional assessment — return of income — filing of — provisional assessment order issued-meanwhile appellant filed the return but same was not entertained being deficient and provisional assessment order declared final — observed that where a person fails to file return of income. The Commissioner is empowered to make provisional assessment specifying tax due thereon — under section 122 – C (2). The said assessment shall be treated as final after expiry of 45 days from the date of service — if the tax payer filed the return of income along with wealth statement etc. within 45 days, provisions of section 122-C (2) shall not apply — further observed, the appellant within 45 days, filed the return, thus the provisional assessment order had become infructuous — held: if in the opinion of DCIR, the furnished return was not valid on account of deficiencies, then notice under section 12 (3) should have been issued directing the appellant to cure deficiencies but on the basis of such deficiencies the provisional assessment was illegally declared final — appeal accepted. Shabbir Ahmed Butt versus Chairman AJ&K Council & 4 others 2023 SCR 585 (D & E)
  5. — section 122 A — Revision by the Commissioner — appellant filed revision instead of appeal before the Commissioner (Appeals) — the Commissioner may suo moto call for the record of any proceeding under this Ordinance or under the repealed Ordinance in which an order has been passed by any officer of Inland Revenue other than the Commissioner (appeals) subject to sub-section (3), where, after making such inquiry as is necessary, Commissioner considers that the order requires revision, the Commissioner may [suo motu] make such revision to the order as the Commissioner demes Here it is to be noted that no revision lies to the Commissioner. It is the suo moto authority of the Commissioner to revise any order passed by the Inland Revenue Officers, if the same is required to be considered. fit. Syed Abrar Hussain Kazmi v. Commissioner Inland Revenue & others 2023 SCR 469 (G)
  6. section 127, 131 and 133 — appeals to Commissioner Inland Revenue (Appeals), Appellate Tribunal Inland Revenue and reference to the High Court — Income Tax Ordinance, 2001, provides a comprehensive procedure for filing of appeal. There may also be disagreement over facts, figures or interpretation of law between the taxpayers and the tax collectors and to resolve such disagreements, the Ordinance lays down the procedure, which gives the taxpayers the right of appeal before the Appellate authorities, which include Commissioner Inland Revenue (Appeals), Appellate Tribunal Inland Revenue, and under section 133, Income Tax Ordinance, right to file reference before the High Court. Syed Abrar Hussain Kazmi v. Commissioner Inland Revenue & others 2023 SCR 469 (A)
  7. — section 127 — appeals against order(s) under section 121,122,143, 144, 162, 170, 182, 183, 184, 185, 186, 187, 188, 189, 161(1), of Commissioner and a taxation officer to Commissioner (Appeals) — limitation for filing appeal is thirty days — procedure and requirements for filing appeal referred, reproduced and elaborated in detail. Syed Abrar Hussain Kazmi v. Commissioner Inland Revenue & others 2023 SCR 469 (B)
  8.  — section 131, appeal to the Appellate Tribunal — appeal against order of Commissioner Appeal to Appellate Tribunal — limitation for filling appeal under section 131, is sixty days — procedure and requirements for filing of and hearing of appeal, referred, reproduced and discussed in detail. Syed Abrar Hussain Kazmi v. Commissioner Inland Revenue & others 2023 SCR 469 (A)
  9. — section 133, Reference to High Court on point of law — against order passed under section 132(7), of Appellate Tribunal — – limitation for filing reference is ninety days — procedure and requirements for filing and hearing of reference referred, reproduced and discussed in details. Syed Abrar Hussain Kazmi v. Commissioner Inland Revenue & others 2023 SCR 469 (D)
  10. — section 133 — appeal before the Supreme Court against order passed under section 133 on reference by the High Court. Syed Abrar Hussain Kazmi v. Commissioner Inland Revenue & others 2023 SCR 469 (E)
  11. S. 133(10) — Reference application dismissed for non-prosecution by a single Judge — Held: A reference application under law can only be heard by a Division Bench of the High Court — A single Judge of High Court is not competent to hear and dispose of the Reference application. Commissioner of Income Tax v. A. Kashmir Logging and Saw Mills Corp 2006 SCR 291 (A)
  12. Section 133, 177(4) and 239 — Direct reference before High Court — Whether maintainable under un-amended section 133 — The next proposition is competency of filing direct reference before the High Court according to the provisions of section 133 of Ordinance, 2001. The observation of the High Court that as the cases have been selected for audit under the provisions of section 177(4) of Ordinance, 2001 pertaining to the tax year 2004, thus, according to the provisions of un-amended section 133 direct references are not competent; appears to be misconceived as the tax year 2004 in this context is not material The material date is that of the order of appellate Tribunal which with reference to the instant case are 21.09.2011 and 18.10.2011. The statutory provisions applicable at the time of order of appellate Tribunal and filing of references, have to be considered. Under the provisions of section 239 of the Ordinance, 2001, the provisions of law relating to assessment of the year ending on or before 30th day of June, 2002, has been saved which relates to the procedure of the assessment and not the references or appeals before the appellate Tribunal. The Ordinance 2001 was adapted in Azad Jammu and Kashmir vide Act, IV of 2002 with effect from 1st July, 2002, while repealing the Azad Jammu and Kashmir Council (Amendment) Act, 1979. Thus, the Ordnance, 2001 has to be deemed to be enforced and applicable from 1st July, 2002. Commissioner Inland Revenue v. Mr. Muhammad Abbas Qadri 2016 SCR 940 (B)
  13. Sections 207 & 239 — Income Tax Ordinance 1979 — sections 3,59, 59- A , 61 , 62& 63 — due to the legislative developments some change have been occurred in the nomenclature of the authorities who have to make assessment — In Act, 1979, the authorities were mentioned in section 3 whereas in Act, 2001, the authorities are mentioned in section 207 — under section 239 (2) —  the authority for the assessment in respect of a tax year ending on any date after the 30th day of June, 2002, in accordance with the procedure specified in section 59, 59 A or 61 or 62 or 63, as the case may be of Act, 1979 is competent to make a assessment in the case falling u/s 239(1). Commissioner Inland Revenue v. AKLASC 2016 SCR 846 (E)
  14. Section 239 — saving clause — Income Tax Ordinance 2001 was enforce w.e.f. 1.7.2002 — u/s 239, in respect of any income year ending on or before the 30th day of June, 2002.The provision of Income Tax Ordinance 1979 in so far as these relate to computation of total  income and tax  payable thereon  shall apply. Commissioner Inland Revenue v. AKLASC 2016 SCR 846 (C&D)
  15. Reference or appeal — relevant time of impugned order — law enforced at the relevant time — to be applied — In our opinion , in the impugned judgment the appreciation made by the High Court is not proper. Regarding filing of reference or appeal the time relevant is the order to be challenged or called in question and the law providing remedy of reference at the relevant time has to be applied not the law which has been removed from the Statute Book years prior to arising the need of filing of appeal or reference. Commissioner Inland Revenue v. Mr. Muhammad Abbas Qadri 2016 SCR 940 (D)
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