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Tax Assessment
Tax Law

Scope of Inquiries – Section 122(5A) of Income Tax Ordinance, 2001

Section 122(5A) of Income Tax Ordinance, 2001 (ITO 2001) provides that assessment order in respect of a tax payer can be amended if in the opinion of Commissioner, the assessment was erroneous and prejudicial to the interest of revenue.

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Key Points

  • An order under section 122 is not a pre-requisite to issue notice under section 122(5A).
  • Enquiries cannot be conducted without the presence of twin criteria of "erroneous & prejudicial to interest of revenue".
  • "Definite information" is not a criterion for invoking section 122(5A) but for section 122(5) of ITO 2001.
  • Section 21(c) is out of purview of section 122(5A) and requires conduct of audit under section 177.
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