| Case ID |
00890563-d832-4510-98b2-debb0b896e28 |
| Body |
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| Case Number |
I.T.As. Nos.336/IB and 417/IB of 2009 |
| Decision Date |
Jan 06, 2009 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal ruled in favor of the taxpayer, stating that the selection for audit under section 177(4) of the Income Tax Ordinance, 2001 was illegal and void due to lack of prior show-cause notice. The Tribunal emphasized that any ambiguities in fiscal statutes should be resolved in favor of the taxpayer, thereby reinforcing the principle of natural justice. The Tribunal also highlighted that add-backs made by the Taxation Officer based on conjectures and stock phrases were not valid. The decision further declared that the additional tax levied under sections 161 and 205 was illegal and beyond jurisdiction, upholding the taxpayer's rights and ensuring compliance with legal standards. |
| Summary |
In the case involving the Appellate Tribunal Inland Revenue, the key issues revolved around the legality of the audit selection process under the Income Tax Ordinance (XLIX of 2001). The Tribunal found that the selection of the taxpayer's case for audit was made without issuing prior show-cause notice, rendering it illegal and void. The ruling reinforced the principle that ambiguities in fiscal legislation should be interpreted in favor of the citizen. The Tribunal disapproved the add-backs made by the Taxation Officer, which were based on conjectures and lacked substantiated evidence. Additionally, the Tribunal ruled that the imposition of additional tax was beyond the jurisdiction of the Taxation Officer, leading to its deletion. This case highlights the importance of adhering to legal procedures in tax assessments and the protection of taxpayer rights. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
MUNSIF KHAN MINHAS, JUDICIAL MEMBER,
CH. NAZIR AHMAD, ACCOUNTANT MEMBER
|
| Lawyers |
Hafiz M. Idrees Advocate,
Abdul Basit, F.C.A.,
Shahid Iqbal, L.A.,
Sardar Ali Khawaja, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2010 SLD 2258,
2010 PTD 2367
|
| Other Citations |
Mohsin Raza v. Chairman F.B.R. 2009 PTD 1507,
M/s. Ebrahim Brothers Ltd. v. Wealth Tax Officer 1996 SCMR 1470,
CIT v. Fatima Sharif Textile 2009 SCMR 344,
PLD 2008 SC 663,
2007 SCMR 330,
2005 SCMR 778,
2005 SCMR 1814,
PLD 2004 SC 441,
Writ Petitions Nos. 1858 of 2008, 209, 453, 709, 816 and 1080 of 2009,
Writ Petitions Nos. 20340 and 20339 of 2009,
Writ Petition 20306 of 2009,
I.T.A. No.565/1B of 2009,
I.T.As. Nos.601 to 603/IB of 2009,
2009 PTD 284,
2008 PTD 1440,
Civil Petitions Nos.1664 and 1665 of 2009,
I.T.As. Nos. 30 to 32 of 2009,
I.T.As. Nos. 476-477/IB of 2009,
I.T.A. No.816/IB of 2009
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| Laws Involved |
Income Tax Ordinance (XLIX of 2001)
|
| Sections |
177(4)(b),
177(4)(d),
174(2),
161,
205
|