| Case ID |
039c17e6-3e7b-4f1b-bf25-0053ca02ffc6 |
| Body |
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| Case Number |
I.T.As. Nos. 403 and 493/LB of 1989-90 |
| Decision Date |
Oct 11, 1995 |
| Hearing Date |
|
| Decision |
The case involves cross-appeals by both the department and the assessee regarding the rejection of the accounts and the estimation of processing receipts. The Appellate Tribunal found that the assessing authority did not establish a fool-proof case for rejecting the accounts, and non-maintenance of stock and consumption registers alone does not justify such rejection. The Tribunal set aside the impugned order, directing the assessing officer to accept the declared trading results, which were found to be better than previous results. The decision emphasized the importance of maintaining fully audited accounts and highlighted that the history of the case should not lead to automatic rejection of accounts without substantial evidence. |
| Summary |
This case examines the rejection of accounts in the context of the Income Tax Ordinance, 1979. The Appellate Tribunal Inland Revenue addressed appeals from both the department and the assessee concerning the assessment of income derived from cloth processing. The tribunal highlighted that without clear evidence of discrepancies in the accounts, the rejection based on historical data is unjustified. It noted that non-maintenance of certain registers does not automatically warrant rejection of accounts. The decision ultimately favored the assessee, reinforcing the principle that properly maintained and audited accounts should be respected, and any rejection of such accounts requires a substantial basis. This case underscores the critical balance between tax compliance and the rights of taxpayers, particularly in the realm of income tax assessments. The ruling is significant for stakeholders in the textile industry, emphasizing the importance of maintaining accurate financial records and the legal standards required for tax assessments. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
CH. MUHAMMAD ISHAQ, JUDICIAL MEMBER,
AHSAN ALAM, ACCOUNTANT MEMBER
|
| Lawyers |
Muhammad Yousuf, I.T.P.,
Abdul Rauf, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1996 SLD 97,
1996 PTD 1104
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| Other Citations |
Not available
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| Laws Involved |
Income Tax Ordinance, 1979
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| Sections |
Not available
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