| Case ID |
03e7f0bb-ac3a-4d5a-8982-4b45a0d1494f |
| Body |
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| Case Number |
ITA No.68 and 69/LB/2013, ITA No.57/LB/2013 and IT |
| Decision Date |
Jan 17, 2023 |
| Hearing Date |
Nov 15, 2022 |
| Decision |
The Appellate Tribunal Inland Revenue dismissed the appeals of the Allied Bank Limited, Lahore against the orders of the Commissioner Inland Revenue (Appeals). The Tribunal upheld the findings regarding the non-deduction of tax and confirmed the additions made under section 24(c) of the repealed Ordinance. The Tribunal ruled that the onus was on the appellant to prove that tax was duly deducted and that the taxpayer cannot be compelled to produce records beyond six years as per section 174 of the Ordinance. The Tribunal also noted that unless parties in respect of which a default is created are identified, tax cannot be recovered. Overall, the appeals were dismissed with the decision to vacate orders u/s 161 for certain years. |
| Summary |
This case revolves around tax assessments involving Allied Bank Limited and the Commissioner Inland Revenue, focusing on issues such as the deduction of tax and the procedural aspects of tax assessments under the Income Tax Ordinance. The Tribunal examined multiple aspects of the law, including sections 120 and 122(5A) of the Income Tax Ordinance, 2001, and sections 62 and 135 of the repealed Income Tax Ordinance, 1979. The case underscores the importance of proper documentation and the taxpayer's burden to prove compliance with tax regulations. The decision reinforces the legal principle that tax authorities must adhere to statutory limitations on record requisitioning and the necessity of establishing defaults before imposing tax liabilities. The ruling is significant for taxpayers and tax practitioners in understanding the nuances of tax law interpretation and the procedural requirements imposed by the Income Tax Ordinance. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
THE CIR, LTU, LAHORE,
ALLIED BANK LIMITED, LAHORE
|
| Judges |
DR. SHAHID SIDDIQ, ACCOUNTANT MEMBER,
AYESHA FAZIL QAZI, JUDICIAL MEMBER
|
| Lawyers |
Mr. Mansoor Beg, Advocate for the Appellant/Respondent,
Nemo for the Respondent/Appellant
|
| Petitioners |
ALLIED BANK LIMITED, LAHORE
|
| Respondents |
THE CIR, LTU, LAHORE
|
| Citations |
2023 SLD 2329 = (2023) 128 TAX 266
|
| Other Citations |
2002 PTD 1,
2021 124 TAX 211 (S.C. Pak.),
2014 110 Tax 221 (H.C. Lah.),
2017 SCMR 1136
|
| Laws Involved |
Income Tax Ordinance, 2001,
Income Tax Ordinance, 1979
|
| Sections |
120,
122(5A),
62,
135
|