I.T.A. No. 1276/LB of 2006, decided on 30th March, 2007. Versus I.T.A. No. 1276/LB of 2006, decided on 30th March, 2007.

ORDER

1. KHAWAJA FAROOQ SAEED (CHAIRPERSON).--- This appeal filed by the assessee is against order of the C.I.T.(A) vide No.22 dated 22-3-2006. The assessee claims that in the presence of a subsequent order on record the Commissioner cannot amend the earlier order.

2. Brief facts leading to this case are that the assessee tiled its return under section 114 on 23-9-2004. The A.R. says that the same has attained the status of an assessment on the date on which it has been received. The assessee revised its return on 15-6-2005 which obviously by virtue of the provisions of section 122(3) also attained the status of an assessment order forthwith on the date of its receipt by the department. The department issued a letter to the assessee to show cause as to why the return filed by him on 23-9-2004 should not be amended under the provisions of section 122(4) not being as per law and rules as understood by the Commissioner.

3. The A.R. objected by saying that there is already another deemed assessment by virtue of revised return dated 15-6-2005 which obviously is assessment for all legal and practical purposes. The Commissioner, therefore, may look into the same and if so desire may proceed accordingly. The reply was ignored and the assessment was revised keeping in view the earlier assessment order dated 23-9-2004 to be the base.

4. The A.R. says that law does not permit ignorance of documents already filed by the assessee separately when by operation of law they have attained the status of an assessment order. The contention of the A.R. is correct and valid. The return riled by the assessee becomes an assessment order by virtue of section 120(1). This has further been reconfirmed in section 120(1)(b) that such return shall be taken for all purposes of this Ordinance to be an assessment order issued to the taxpayer by the Commissioner on the date return was furnished. Similarly the revised return under section 114(6) within period prescribed therein also is to be taken for all purposes of this Ordinance to be an amended assessment order issued to the taxpayer by the Commissioner on the day on which the revised return was furnished. This has been so mentioned in section 122(3)(b). Now if commissioner intends to amend an assessment order treated as issued under section 122(3)(b) he will have to proceed further on the basis of said assessment. There is no escape from the same hence making an assessment in ignorance to the amended assessment order by implication of the provision of section 122(3)(b) an amended order on the basis of earlier assessment order obviously cannot stay in field.

5. The assessment framed therefore, obviously is illegal hence the same is cancelled. This obviously does not mean that the cancellation of the order of the Assessing Officer restrained .him from proceeding further as per law and rules on the basis of the revised assessment order under section 122 read with section 77 etc.

6. Order accordingly.

7. C.M.A./72/Tax(Trib.) Appeal accepted.