| Case ID |
0379e7ab-7910-459f-8619-2260fab65e6f |
| Body |
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| Case Number |
M.As. Nos. 381/LB to 383/LB of 2005 |
| Decision Date |
Dec 30, 2005 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal dismissed the rectification application filed by the Revenue, stating that no apparent mistake was found in the Tribunal's order dated June 30, 2003. The Tribunal held that the arguments presented by the Revenue were new and did not form part of the original case. It emphasized that a mistake must be apparent from the record and not require extensive reasoning or additional evidence. The Tribunal reaffirmed that partners can authorize one partner to operate a bank account on behalf of the firm, provided such authorization is documented in the partnership agreement. As a result, the application was rejected as lacking legal substance. |
| Summary |
This case revolves around the application for rectification of a decision made by the Income Tax Appellate Tribunal concerning the assessment of bank accounts held by a partner in his name versus the firm's name. The case emphasizes the importance of clear documentation in partnership agreements regarding the operation of bank accounts by partners. The Tribunal ruled that the Revenue's arguments did not demonstrate an error that was apparent from the record and reiterated the legal principle that partners can agree to allow one partner to manage accounts on behalf of the firm. This decision highlights the necessity of adhering to the provisions of the Income Tax Ordinance and the Partnership Act while navigating tax assessments. The ruling serves as a significant reference point for similar cases involving partnership and taxation law, showcasing the intricacies of tax compliance and the legal frameworks governing partnerships. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Zafar Ali Thaheem,
Mazhar Farooq Shirazi
|
| Lawyers |
Haji Ahmad Din,
Faqir Hussain,
Saqib Bashir,
Javed Iqbal
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2006 SLD 239,
2006 PTD 2693,
(2006) 93 TAX 26
|
| Other Citations |
(1962) 5 Tax 126 (Trib.),
I.T.As. Nos. 556 and 557 of 1965-1966,
1995 PTD (Trib.) 770,
1993 PTD (Trib.) 964,
PLD 1967 Dacca 35,
1999 SCMR 2189
|
| Laws Involved |
Income Tax Ordinance, 2001,
Partnership Act, 1932
|
| Sections |
156,
19(2)(b)
|