ORDER NASIM SIKANDAR, J.- The petitioner is an assessee of the Income Tax Department since the year 1998-99. He had been filing his returns in Circle-13, Zone-A, Lahore, It appears that despite change of business address from Gulberg to Model Town Lahore, he continued filing returns in that circle though his new business address was covered by Circle 16, Zone B, Lahore.
2. The concerned I.A.C. Range-I, Zone-A, Lahore accordingly served upon him a show-cause, notice under Section 66-A of the late Income Tax Ordinance, 1979 and finally cancelled the three assessm ents for the years -1997-98, 1998-99, 1999-2000 which were earlier accepted under Self- Assessm ent Scheme in Circle-13, Zone-A. From the operative part of his order, dated 24.2.2001 it appears that not only he cancelled the completed assessments and directed the Assessing Officer Circle-13, Zone-A, Lahore to transfer the case to the Assessing Officer in Zone-B, Lahore but also the transferee office Zone-B was directed to initiate the proceedings for re-assessment. Latter part of that order has aggrieved the petitioners.
3. After hearing the learned counsel for the parties I am persuaded to agree that a bona i.e mistake of filing return in previous circle despite change of business address was taken too far by the Department to initiate proceedings under Section 66-A of the late Income Tax Ordinance, 1979. An administrative order for transfer, on ascertainment of the factual position, would have been sufficient. Instead the department treated it as a God given opportunity to deny the assessee the concession of Self-Assessm ent scheme although in the previous circle all the three returns had been accepted under Self-Assessm ent Scheme. Even in the reply before this Court the Revenue has not denied that the petitioner having fulfilled all the requirements of the scheme in currency was found entitled to the concession in the previous Circle.
4. Once a subject responds to an offer made by the State/Revenue then it unbecoming of a State to fish out ways and means to retrieve that concession. Self- Assessment Schemes, in our country are in no way a bounty of the State. Almost invariably these Schemes are available only to those who make payment of more tax than the one paid in the previous year, In that manner an assessee in fact purchases the concession. Therefore, its retrieval on far-fetched technicalities or vague allegations of concealment is not only unjustified but unfortunate as well. Even where such retrieval is legally justified, the Revenue ought to exercise restraint so that the assessee may not lose trust in it. No one can possibly hold a brief for a cheater and tax evader. However, unilateral withdrawal of a concession by the Revenue against an assessee who had paid for it appears unjustified, as the assessee/subject had performed his part of the contract by making more payment of tax. The provisions in Self-Assessment Scheme permitting detailed scrutiny of a certain percentage of cases, therefore, need to be resorted to as sparingly as possible. This is the only way that the confidence of the assessee in the Revenue and the credibility of the system can be restored.
5. In the case in hand the Revenue once having accepted that the assessee was entitled to the concession on fulfilling of legal requirements, the same could not be withdrawn for the only reason that the return had been filed in the previous circle. Therefore, this petition is allowed and the proceedings initiated for framing of regular assessments in respect of the three years involved are declared to be without lawful authority.