BEFORE KHAWAJA FAROOQ SAEED, JUDICIAL MEMBER AND MAZHAR FAROOQ SHERAZI, ACCOUNTANT MEMBER Versus BEFORE KHAWAJA FAROOQ SAEED, JUDICIAL MEMBER AND MAZHAR FAROOQ SHERAZI, ACCOUNTANT MEMBER

ORDER

1. KHAWAJA FAROOQ SAEED (JUDICIAL MEMBER). ---The cancellation of order under section 66A is agitated by the Assessee.

2. The petitioner has challenged the invocation of jurisdiction under section 66A mainly on the point that 'last declared or assessed' as used in Self-Assessment Scheme for the Assessment Year 1999-2000 does not mean last ever highest assessed in a number of years. It basically means 'latest declared or latest assessed'.

3. On the other hand the learned D.R. supported the argument of the I.A.C. and said that the "last declared or assessed whichever is higher" would mean and include highest in any of the previous assessment years and there is no concept of latest assessment.

4. The brief facts leading to this appeal are that the assessee declared Rs. 2,00,000 as income and filed his return under Self -Assessment Scheme for the Assessment Year 1999-2000. The return was neither selected for total audit nor a formal order was framed and the assessment by virtue of section 59(4) stood completed. Further, the acknowledgment slip was also to be treated as an assessment order in the absence of proceedings prior to 30th June next following. The assessment, therefore, was said to be complete and following para was referred for determining the status of the income.

5. "C. No. 18 of 1999, dated 11-9-1999 para. 3(b)."

6. "The income declared for assessment year 1999-2000 is not less than the income last declared or assessed whichever is higher."

7. Relying upon above, the learned I.A.C. considered the income of Rs. 2,00,000 to be less than the last highest assessed of Rs. 8,00,00b which was for 1996-97.

8. We have perused the record and have also mentioned the relevant facts as above. The argument of the A.R. is that last assessed means latest assessment year. He referred an earlier Self-Assessment Scheme issued by Central Board of Revenue for the assessment year 1989-90 where the word 'last assessed' has been defined as 'latest assessment year'. We are conscious of the fact that in every year the scheme is independent from history. Moreover, the meanings of a word is to be found from the relevant law itself. However, not only that aforementioned interpretation has been given by the C.B.R. itself, in some of its S.A.Ss. the same has been followed by the higher Courts as well as by the department in a number of cases.

9. Last declared or assessed whichever is higher', in the present case therefore, would mean relevant to assessment year 1998-99. In case assessment for the assessment year 1998-99 has not been finalized for any reason the assessed income of 1997-98 shall be the base if the same is higher from the declared income of 1998-99. The same formula shall apply if in the earlier two years the declared income could not be assessed and the assessed income of third year is higher than the declared income of the two subsequent years. Last assessed in the present case therefore, does not mead highest of any of the earlier years. The assessed income of 1996-97 can only be made base if for 1997-98 and 1998-99 the assessments have not been framed until the date of filing of return for 1999-2000. Even if, we ignored the meanings of 'last assessed' as given in an earlier assessment years and go for ordinary dictionary meanings 'last' is interpreted to be, "coming at the end, most recent, after all others etc." (Little Oxford Dictionary Seventh Edition 1994). The same, therefore, cannot be stretched in the manner department wants us to. In the present case the figures have not been mentioned in detail however, from the record produced, it is apparent that the assessee case was considered fit for acceptance under S.A.S. As a result, thereof the appeal filed by the assessee is hereby accepted and the I.A.C. order is cancelled with obvious result that the order of the I.T.O. stands restored.

10. C.M.A./M.A.K./158/Tax(Trib.) Appeal accepted.