| Case ID |
02ce7b25-4e83-43da-94fa-1a2981967629 |
| Body |
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| Case Number |
I.T.A. No.1617/ KB of 1982-83 |
| Decision Date |
Jul 04, 1987 |
| Hearing Date |
|
| Decision |
The appeal was allowed as the Tribunal found that the Assessing Officer failed to provide a basis for the estimated sales of Rs. 2,00,000 and the GP rate of 25%. It was determined that the appellant’s declared sales should be accepted as they were supported by subsequent years’ records and parallel cases that were not properly confronted to the appellant. The Tribunal emphasized the necessity for the Assessing Officer to evolve a basis for his estimates and to confront the assessee with any parallel cases relied upon. The declared version of the appellant was accepted, overturning the decisions of the lower authorities. |
| Summary |
This case revolves around the Income Tax Ordinance, 1979, particularly Section 63, which addresses the principles of best assessment in income tax cases. The case highlights the importance of a thorough basis for any sales estimations made by the Assessing Officer. The Tribunal's ruling underscored that the Assessing Officer must not only estimate sales but must also provide justification for such estimates. The failure to confront the appellant with parallel cases that were cited as a basis for assessment led to the decision to favor the appellant. This case serves as a crucial reference for understanding the standards of evidence and confrontation required in tax assessments, making it relevant for both legal practitioners and taxpayers alike. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
FARHAT ALI KHAN, CHAIRMAN
|
| Lawyers |
Rehmat Ali Sheikh,
Abdul Ghani Channa
|
| Petitioners |
Rehmat Ali Sheikh
|
| Respondents |
Abdul Ghani Channa
|
| Citations |
1987 SLD 90,
1987 PTD 638
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
63
|