Tax Amnesty Scheme 2000

Capital was enhanced through the declaration of stock in Tax Amnesty Scheme, 2000 just four days before the end of the financial year

Assessing Officer treated the assessee to be an "assessee in default" on the ground that the assessee's business capital during the assessment year was increased by Rs.10,00,000 and he was under legal obligation to deduct tax under S.50(4) of the Income Tax Ordinance, 1979 on his purchases

Validity

Inclusion of stock in the firm's books of account at the fag end of the income year did not hold the assessee to be an "assessee in default"

Peculiar and extraordinary circumstances had been cropped up in the present case consequent upon which capital in business had been increased, in the books of account four days prior to close of the income year

Clause (33) of Part IV of the Second Schedule of the Income Tax Ordinance, 1979 would not attract to the facts of the case as this clause and its proviso catered altogether for different situation which did not exist in the present case for the simple reason that capital in business had never increased while executing normal business activities

Appeal of the Department was dismissed.

Allegation that the Assessing Officer illegally issued notice under S. 65 of the Income Tax Ordinance, 1979 deliberately ignoring the Tax Amnesty Scheme, 2000 did carry weight because declaration was filed on 4-6-2000 when no proceedings were pending against the declarant in respect of years to which declaration related

Show-cause notice asking why proceedings should not be initiated under S. 65 issued/served on 31-5-2000 had no validity in law

Notice under S. 65 of the Income Tax Ordinance, 1979 had been served on 24-6-2000 after filing of declaration

Declaration was validly filed.

Disregarding the applications of the complainant and apathy shown to the problems of the taxpayers amounts to maladministration.