Q: 14 Discuss the various types of assessment made by the commissioner of

income tax/ commissioner inland revenue?

a) RETURN OF INCOME AS ASSESSMENT
When a taxpayer furnishes a return of income for a tax year, the taxpayers return
will be accepted as such without any question. The return itself will be treated as
assessment order by the commissioner. The calculation made by the taxpayer of
total income, exemptions claimed and computation of tax due there on will be
accepted.
Thus, the proof of furnishing a return of income to the commissioner by the
taxpayer of any tax year will be sufficient that assessment has been completed
and the assessment order have been made by the commissioner.
b) AMENDED ASSESSMENT
Under the income tax ordinance, 2001 a return filed by a person is treated as
assessment order. Now, if there is any omission or error in the return then it
becomes necessary to make appropriate modification. This modification is termed
as amended assessment. Legal provision in this regard are summarized below:
1) An assessment may be amended at any time within a period of five time
years.
2) Where the taxpayer has revised his return of income, it shall be treated as
an amended assessment.
3) Where a CIR has amended an assessment, he may further amend the same
as many times as are considered necessary.
4) The amended assessment may be made within a time period which is later
of the following:
a) Five years of the date of original assessment; or
b) One year of the date on which CIR has issued or treated to have been
issued the amended assessment order.
5) An amended assessment shall be made only if the CIR shall satisfy himself
on the basis of definite information acquired by him from an audit or
otherwise.
6) After making the amended assessment, the CIR shall issue the order in
writing.
 C) PROVISIONAL ASSESSMENT
Where the taxpayer has a concealed asset and that asses is impounded by any
Government department or agency, the CIR may make an order assessing therein
the taxable income and the tax liability of the taxpayer. This assessment is subject
to the following conditions.
1) A provisional assessment may be made before any assessment/ amended
assessment is made under section 121 or 122.
2) It is to be made in writing.
3) The CIR shall finalize the provisional assessment as soon as practicable.
4) It is made on the basis of value of the concealed asset.
5) The provisional assessment order is issued for the last completed tax year.
Concealed assessment means any property or asset which, in the opinion of
the commissioner, was acquired from any income subject to tax under the
income tax ordinance 2001.
D) ASSESSMENT IN CASE OF A DISPUTE PROPERTY
Where there is a dispute regarding the ownership of a property and the
case is before any civil court in Pakistan, then it will not be possible for the CIR to
make assessment in case of income derived from such property. The CIR shall
make the assessment or amended assessment after the court has decided the
case. The assessment order shall be issued within one year after the end of the
financial year in which the court has decided the case.