COMMISSIONER INLAND REVENUE ZONE BAHAWALPUR, REGIONAL TAX OFFICE, BAHAWALPUR vs MESSRS BASHIR AHMED (DECEASED)

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COMMISSIONER INLAND REVENUE ZONE BAHAWALPUR, REGIONAL TAX OFFICE, BAHAWALPUR VS MESSRS BASHIR AHMED (DECEASED) Ss. 111(1)(b), 122(1), 122(5) & 122(9)---amendment of deemed assessment order---'Definite information' ---Scope---Tax return filed by the respondent (deemed assessment order) was scrutinized, and it was found that the respondent had only declared agricultural income of Rs.500,000/, whereas the department (as claimed by it) had definite information that the latter had acquired immoveable property in the sum of Rs.56,00,000---On such basis a notice ('the first notice') was issued under S. 122(1) of the Income Tac Ordinance, 2001 ('the 2001 Ordinance') read with subsections (5) & (9) thereof, requiring the respondent to show cause as to why the deemed assessment order should not be suitably amended---Subsequently another notice (second notice), under S. 111(1)(b) of the 2001 Ordinance was also issued in respect of the said property---Legality---First notice purported to state that "the department is in possession of definite information" regarding the investment allegedly made in immoveable property---Such claim was repeated in the second notice under S. 111 of the 2001 Ordinance---Respondent was not given an opportunity, as was mandatorily required by S. 111, to satisfy the tax authorities as to the source etc. of the funds by which the immoveable property was acquired---Rather, the department from inception, and throughout, proceeded on the basis that it already had definite information with it in this regard, such as was sufficient to allow the amendment of the deemed assessment order---However, that could not be so until first the proceedings under S. 111 of the 2001 Ordinance had culminated in an appropriate order--- Such an order could have constituted the definite information as would allow the amendment of the deemed assessment order---Proceedings under S. 111 were, as it were, "short circuited" altogether since the department began with the (incorrect) premise that it already had definite information available with it, and the concerned officer proceeded accordingly---Department did not have definite information available with it within the contemplation of the 2001 Ordinance---appeal was dismissed.

COMMISSIONER INLAND REVENUE ZONE BAHAWALPUR, REGIONAL TAX OFFICE, BAHAWALPUR vs MESSRS BASHIR AHMED (DECEASED) Ss — 2021 SCMR 1290 SUPREME-COURT

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