| Case ID |
25bb00af-b270-41dd-a961-f28117b8e9c6 |
| Body |
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| Case Number |
I.T.R No. 41/2011 |
| Decision Date |
Nov 12, 2012 |
| Hearing Date |
Nov 12, 2012 |
| Decision |
The court decided that prior to the amendment brought about in Sections 121 and 177(10) through Finance Act, 2010, Section 121(1)(d) of the Income Tax Ordinance, 2001 did not apply to cases where a return of total income had been filed and did not envisage a second assessment order. The case involved the assessment orders made under Sections 120 and 121 of the Ordinance, and it was determined that the legislative scheme for the period in question did not provide for the cancellation or annulment of a deemed assessment order passed under Section 120 by an assessment order under Section 121(1)(d). Hence, the question of law raised in the references was decided in favor of the assessee, affirming that no second assessment order could be made under the aforementioned provisions when a return had already been filed. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, 2001, specifically Sections 120, 121, and 177. The Lahore High Court addressed the question of whether an assessment under Section 121(1)(d) could occur following a deemed assessment order issued under Section 120. The court ruled that prior to the amendments made in 2010, Section 121(1)(d) did not permit a second assessment where a return of total income was already filed. The ruling emphasized the legislative intent and the procedural framework guiding income tax assessments, clarifying that the amendments introduced in 2010 sought to rectify the identified lacuna in the law. The case highlights significant aspects of tax law and the importance of adhering to procedural requirements in income tax assessments, making it a critical reference point for future cases involving similar issues. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
MR. JUSTICE SYED MANSOOR ALI SHAH,
MR. JUSTICE MUHAMMAD FARRUKH IRFAN KHAN
|
| Lawyers |
Ms. Shahina Akbar, Advocate,
M/s. Khalid Javed, Additional Commissioner,
Mr. Farooq A. Nasir, Additional Commissioner,
Mr. Hafiz Muhammad Idrees, Advocate
|
| Petitioners |
Commissioner Inland Revenue (Legal)
|
| Respondents |
Commissioner Inland Revenue (Appeal)
|
| Citations |
2013 SLD 57 = 2013 PTCL 152
|
| Other Citations |
Glaxo Laboratories Ltd v. Inspecting Assistant Commissioner of Income Tax and others (1992 SCC 910)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
120,
121,
177
|