1 APPELLATE TRIBUNAL INLAND REVENUE, LAHORE BENCH, LAHORE MA No.404/L.B/2017 In (ITA No.527/L.B/2012) & (MA No.216/L8/2017) The CIR, LTU, Lahore. ...Appellant Versus Mls. Sefam (Pvt) Limited, Lahore +-Respondent Appellant by: Ms. Tabinda Shaheen, DR. Mr, Qadeer Ahmad, ITP. s\a\\ Datalor hearing: 08.11.2023 « Daté/of order: 29.11.2023 . ORDER SARFRAZ ALI KHAN (Judicial Member): This titled application for rectification u/s 221 of Income Tax Ordinance, 2001 has been filed by the Department against the order passed by this forum in MA No.216/LB/2017 dated 02-06-2017 for Tax Year 2005 against order in ITA No. 527/LB/2012 dated 25- 06-2012 against order under section 122(1)(5) of Income Tax Ordinance 2001 dated 30-06-2011 2. Brief facts of the case are that the taxpayer is a private limited company deriving its income from sales of fabric. Against the order of Appellate Tribunal Inland Revenue, Lahore vide MA No.216/LB/2017 dated 02-06-2017 the department filed rectification application u/s 221 of Income Tax Ordinance, 2001 The department has contested the application for rectification on the following grounds. 1. That the taxpayer, in this case, is Private Limited Company, derives income from the local & export sale of its manufactured textile products. The assessment was amended under section 122(1)/(5) of the Income Tax Ordinance, 2001 vide order dated 30.06.2011 by making addition u/s 111 of the Income Tax Ordinance, 2001 at Rs.194,955,973/- (copy enclosed as (Annex-A)_ fe 2 That the taxpayer, being aggrieved with the above noted Ll tre filed appeal before the Commissioner Inland Revenue (eae Lahore who vide order bearing No.10/LTU/A-IV dated 01.03.20172 ; of the Income Tax Orci e lltion made under section, 111 of @ Ordinance, 2001(copy enclosed as (Annex-B)- ly (copy fssue that section 111, is not applicable retrospectively ( enclosed as (Annex-C). 4. t filed IR the departmen Lahore which was decided 17.05.2017 through That against the order the learned A Reference before the Lahore High Court, Lal in favour of the Department vide order date: No, 404/2012 (copy enclosed as (Annex-D). je nce by the That the DR brought the fact of conclusion of eee ead “Sy, Honourable Lahore High Court, Lahore to the knowledge 8. entre S:\ Tribunal during hearing but it has not even Be eae ant \")) Order of ATIR which is against the norms of justi ‘. |) Of DRis attached). o i 17, for That the taxpayer filed miscellaneous application No.246/LB/2017, for seeking rectification of ATIR order No.527/B/2012 wherein the legality of the proceedings u/s. 122(1)(5) was challenged on the Peretti cing ansed wie 12000) wee Barred & y pete eer Of the time limitation provided under Section 122 of the income Tax Ordinance,2001. Learned ATIR actoen the M.A. vide order dated 02.06.2017 in favour of the taxpayer wi H the observation “in view the above said authoritative judgment oe Honourable Supreme Court of Pakistan, the amended assessment order passed by the taxation officer in the case in hand on 30.06.2011 is obviously time barred. In view of the foregoing discussion, our earlier order dated 25.06.2012 stand modified accordingly”. 7. That the order passed by the learned ATIR in MA No. 216/ B/2017dated 02.06.2017 has ignored the fact that the order of ATIR (ITA No. 527/M/2012 dialed 25.06.2012) had already merged into the order of the Honourable Lahore High Court, Lahore dated 17.05.2017. Hence, no rectifici ation was possible of an order which was no longer in field. 8 ghe said principle has further been discuss Supreme Court of Pakistan rec 1176 and 1177 o} Sahabdazi Mahrunis fed and upheld by the ently while deck f 2015 and Civit aed: ‘No. ean var aa bpeals No. ‘L of 2015 ‘sa & Sahabdazi Madhia Abbasi ve Mat Ghaies ‘er. The honorable Supreme Court of Pakistan held Sughran and anoth