| Case ID |
00aaf5a6-a8a2-46eb-ab52-f9a75937f7fa |
| Body |
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| Case Number |
ITA No. 837/IB/2013, ITA No. 838/IB/2013 |
| Decision Date |
Jan 20, 2016 |
| Hearing Date |
Jan 20, 2016 |
| Decision |
The Appellate Tribunal rejected the appeals filed by the department against the order of the Commissioner (Appeals) which annulled the assessment orders on the grounds of being time-barred. The Tribunal held that the amended assessment was indeed time-barred as it was beyond the five-year limitation set by the Income Tax Ordinance. The Tribunal emphasized that the taxpayer had acquired a vested right to the limitation period upon filing their return and that subsequent legislative amendments could not infringe upon this right. Therefore, the Tribunal maintained the order of the learned CIR (A) and rejected the department's appeals. |
| Summary |
In the case of ITA No. 837/IB/2013 and ITA No. 838/IB/2013, the Appellate Tribunal Inland Revenue, Islamabad addressed significant issues related to the Income Tax Ordinance, particularly concerning the limitation period for amended assessments. The appeal was initiated by the department against the annulment of assessment orders for tax year 2007, which the Commissioner (Appeals) declared as time-barred. The Tribunal meticulously analyzed the legal framework surrounding the assessment process, highlighting the importance of the five-year limitation period and the taxpayer's vested rights upon filing their returns. The Tribunal concluded that the amendments made to the law could not retroactively affect the taxpayer's rights, resulting in the rejection of the department's appeals. This case underscores the critical nature of compliance with statutory limitations in tax assessments and the protective rights afforded to taxpayers under the Income Tax Ordinance. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
CIR, LTU Islamabad,
M/s. Bahria Town (Pvt) Limited
|
| Judges |
Not available
|
| Lawyers |
Mr. Mohammad Jawwaad, DR,
Syed Tauqeer Bukhari Advocate,
Syed Tanseer Bukhari Advocate
|
| Petitioners |
Not available
|
| Respondents |
M/s. Bahria Town (Pvt) Limited, Rawalpindi
|
| Citations |
2016 SLD 120
|
| Other Citations |
2009 (99 Tax 371 H.C. Karachi),
2012 PTD 1936,
2012 PTD 1739,
ITA No. 494 to 497/IB/2013,
ITA No. 431/IB/2011
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
177,
122
|