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Petitioner: .B. PLAZA VS Respondent: COMMISSIONER OF INCOME TAX/WEALTH TAXHonorable Justice Talaat Qayyum QureshiAbdul Rauf Rohaila,Shahid Raza Malik
2010 PTD311
2010 PTD311
[Peshawar]
Before Talaat Qayyum Qureshi, J
Messrs G.B. PLAZA
Versus
COMMISSIONER OF INCOME TAX/WEALTH TAX
F.A.O. No.71 of 2005, heard on 4th April, 2007.
Wealth Tax Act (XV of 1963)---
----S.16---Ex parte assessment order for non-appearance of assessee---Validity---Assessing Officer had not made any effort to know as to whether assessee was sole proprietorship concern or was owned by many shareholders---Assessee had not been made party through any person to come forward and defend case---Such ex parte order was violative of the rules of natural justice---High Court set aside impugned order and remanded case to Assessing Officer with directions to assess assessee through some person and after recording versions of its various owners-shareholders and pass order strictly on merits and in accordance with law.
Abdul Rauf Rohaila for Appellant.
Shahid Raza Malik for Respondent.
Date of hearing: 4th April, 2007.
JUDGMENT
TALAAT QAYYUM QURESHI, J.---The appellant is a Shopping Plaza with the name and style of `Messrs G.B. Plaza' situated at Jamrud Road, Peshawar. In order to assess wealth tax, the Assessing Officer initiated proceedings for assessment years 1997-98, 1998-99 and 1999-2000 but none appeared from the appellant's side, therefore, the Assessing Officer passed an ex parte order on 27-2-2001.
Having come to know about the passing of the said ex parte order, the appellant filed appeal before the Commissioner, Income-Tax/Wealth Tax Appeal Zone-II, Peshawar but the same was partially allowed vide judgment, dated, 12-7-2001.
Still dissatisfied with the above judgment/order, `Messrs G.B. Plaza/appellant filed yet another appeal before the Income Tax Appellate Tribunal, Peshawar Bench, Peshawar, which dismissed the appeal and confirmed the order of the Commissioner Income-Tax/Wealth Tax, Appeal Zone-II, Peshawar vide judgment/order, dated 20-6-2005. The appellant has now impugned all the judgments/orders of the income tax authorities through the appeal in hand raising various questions of law.
We have heard Mr. Abdur Rauf Rohaila, Advocate, the learned counsel representing the appellant as well as Mr. Shahid Raza Malik, Advocate, the learned counsel representing the respondents at length and perused the available record.
The learned counsel for the appellant vehemently argued that `Messrs G.B. Plaza situated at Jamrud Road though had been assessed under the Wealth Tax Act, 1963 but neither its owners nor the shareholders were issued notices, therefore, they were not aware of the proceedings pending against them. They could not put-forth their versions and no proper exercise was done to know as to how `Messrs G.B. Plaza' had been owned and by whom and ex parte assessment order was passed. The departmental appellate authorities had also failed to appreciate the said position.
On the other hand, Mr. Shahid Raza Malik, Advocate, the learned counsel for the respondents argued that many notices had been issued to the appellant but they did not turn up and due to their non-co-operation, the Assessing Officer had to proceed against them ex parte and pass assessment order as there was no alternative left for him.
Without going into the merits of assessment order, while assessing `Messrs G.B. Plaza' the Assessing Officer did not make any effort to know as to whether it was the sole proprietorship or it was owned by many shareholders. Even the `Messrs G.B. Plaza was not made party through any person to come forward and defend the case, therefore, the ex parte order has been passed in violation of the rules of natural justice.
Resultantly, we allow the appeal in hand, set aside the impugned judgments/orders and remand the case back the Assessing Officer with directions to assess `Messrs G.B. Plaza' through some person and after recording the versions of its various owners-shareholders, the assessment order be passed strictly on merits and in accordance with law. The learned counsel for the appellant undertook that the appellant shall appear before the Assessing Officer as and when called by him. The parties are directed to appear before the Assessing Officer on 19-4-2007.
S.A.K./198/P Case remanded.