2022 PLP (Trib (PTD)

MUHAMMAD TAHIR, ACCOUNTANT MEMBER.

The above titled miscellaneous application seeking grant of stay against initiation of assessment proceedings in consequence of CIR (Appeal) order bearing No.371/19 dated 16.09.2019 has been filed at the instance of the registered person.

2. The learned counsel of the registered person/applicant has apprised the court that appeal of the registered person/applicant bearing STA No.1477/LB/2019 against remand order of learned CIR (Appeals), is pending adjudication before this Tribunal but in the meantime the department has initiated reassessment proceedings vide notice bearing C No.303 dated 14.11.2019 in pursuance of that appellate order, despite the fact that the appeal of the registered person has not gone through the scrutiny by an independent judicial forum. He has further submitted that the applicant has a prima-facie good case with every likelihood of success. He argued that initiation of reassessment proceedings by the IRAO is only creating un necessary workload, hardship for the applicant and at times led to multiplicity of litigations but also frustrating the right of appeal before this Appellate Tribunal. He contented that the IRAO may be restrained from reassessment proceedings till decision by the Appellate Tribunal. On the other hand, the learned DR prays for rejection of above titled miscellaneous application by terming the action of departmental authorities to be justified.

3. Arguments advanced by the representatives of both the parties have been heard and relevant record perused. Admittedly, the appeal of the applicant/registered person assailing the treatment meted out by first appellate authority is pending for decision before this Tribunal. The identical issue has been decided by the Honourable Lahore High Court in Writ Petition No.7636 of 2017 vide order dated 15.03.2017 in the following manner:- "Appellate Tribunal, in exercise of appellate jurisdiction under the Section 132, can affirm, modify or annul an assessment or an order appealed against, in addition to remanding the case to Appellate Commissioner. To exercise this jurisdiction effectively, power to suspend the impugned order or to restrain Taxation Officer from allowing the Taxation Officer to complete re-assessment would not only lead to multiplicity of litigation but would frustrate the right of appeal before Appellate Tribunal if subsequent order is passed." The Tribunal has also decided the similar issue in hand through a judgment reported as 2005 PTD 678 in a following manner:- "The courts have held that when an order of assessment is set aside in appeal by an authority and a further appeal is filed against such setting aside of the order before a higher authority then the Assessing Officer should not frame re-assessment and he should wait for the decision of higher forum." In the light of above quoted reported judgment of superior courts as well the Tribunal we are inclined to hold that the department should wait for the decision of Tribunal as the taxpayer has come up in second appeal against remand back of an order by the CIR (Appeals). We find force in the arguments advanced by learned counsel of the registered person that at this stage initiation of reassessment proceedings by the Revenue Authorities without going through this appeal the scrutiny by an independent judicial forum is not justified. Therefore, keeping in view this hardship, we are inclined to grant stay against initiation of reassessment proceedings by way of suspending the operation of impugned hearing notice issued by IRAO till decision of appeal However, the office is directed to fix main appeal of the registered person in First Week of December 2019 before any available Bench after obtaining approval from the Competent Authority. We order accordingly. SA/50/Tax (Trib.) Order accordingly.