Revised assessment

2017 PTD 1058 HIGH-COURT-AZAD-KASHMIR Judicial Precedent

Ss. 62, 65, 134, 135 & 136Reference to High CourtRevised assessment

Assessee corporation filed return of its income for relevant assessment year; which subsequently was revised and Taxation Officer enhanced the amount of tax

On filing appeal by the assessee, appellate authority below allowed some expenses, but disallowed most of the claim of assessee

Assessee feeling dissatisfied by the order of appellate authority below filed appeal before Appellate Tribunal, which appeal was accepted, but case was sent back to the Taxation Officer to calculate the amount of tax on the basis of revised return

Reference to High Court

Question of law which arose out of the order of the Tribunal was; "whether the Tribunal after accepting the version of the assessee corporation in toto, was justified to direct the Taxation Officer to re-calculate the amount of tax, specially with reference to Proviso to S.62(1) of Repealed Income Tax Ordinance, 1979"

Tribunal had finally resolved that the Tribunal was satisfied that the documents furnished before the Taxation Officer were sufficient explanation of expenditure under different heads and that Taxation Officer was not competent to reject the audited revised returns without solid reasons

Tribunal was not justified to direct the Taxation Officer to re-calculate the tax amount; rather it was manifest to order the acceptance of the revised return

Revised returns had been accepted as correct by the Tribunal, and those observations had attained finality for having not been challenged by the department

Impugned remand order, with direction for re-calculation of the tax amount passed was likely to push the assessee to another endless round of an unnecessary proceedings

Question of law referred by the assessee and formulated by the High Court, was answered in the negative

Judgment of the Tribunal to the extent of re-calculation of the tax amount, was set aside

Revised return filed by assessee stood accepted

Order accordingly.