| Case ID |
0412c997-d9b5-48b5-9ae7-22f5a47863f9 |
| Body |
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| Case Number |
Cons. P. No. D-1597 of 1987 |
| Decision Date |
Aug 09, 1988 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the petition challenging the notice issued under Section 65 of the Income Tax Ordinance, 1979. The court found that the petitioner, Zafar Usman, had not adequately disclosed certain expenditures in his income tax return. The court highlighted that the material on record did not show that the items of expenditure were factually disclosed by the petitioner, which justified the issuance of the notice. The ruling reinforced the authority of tax officers to reassess cases where they discover new material that may indicate underreporting of income or misrepresentation of facts. The decision emphasizes the importance of full disclosure in tax matters and the limitations on reopening assessments based solely on a change of opinion by the tax authorities. |
| Summary |
In the case of Cons. P. No. D-1597 of 1987 before the Sindh High Court, the petitioner Zafar Usman challenged a notice issued by the Income Tax Officer under Section 65 of the Income Tax Ordinance, 1979. The petitioner, who is the Director of M/s M.F.M.Y. Industries, had filed an income tax return for the year 1986-87, but the court found that he failed to disclose certain expenditures, leading to the issuance of the notice. The court reviewed the documentation and previous assessment orders, concluding that the notice was valid and within jurisdiction. The ruling underscores the importance of full and accurate disclosure in tax filings, as well as the powers of tax authorities to reassess based on newly discovered information. This case illustrates the ongoing challenges faced by taxpayers in navigating tax regulations and the critical nature of compliance in maintaining transparent financial reporting. |
| Court |
Sindh High Court
|
| Entities Involved |
M/s M.F.M.Y. Industries (Private) Limited,
M/s Mitsubishi Corporation
|
| Judges |
AJMAL MIAN,
AHMAD ALI U. QURESHI
|
| Lawyers |
S.A. Wadood,
Rehan Hassan Naqvi,
Waheed Farooqi
|
| Petitioners |
ZAFAR USMAN
|
| Respondents |
THE Income Tax OFFICERS AND OTHERS
|
| Citations |
1989 SLD 70,
1989 PTD 547,
(1989) 59 TAX 86
|
| Other Citations |
Arafat Woollen Mills Limited V. The Income Tax Officer, Companies Circle C-1, Karachi (Civil Appeal No.5-K of 1986),
Arafat Woollen Mills Ltd. v. The Income-Tax Officer, Companies Circles E-1, Karachi 1986 P T D 316,
Messrs Wali Traders V. Income Tax Officer, Circle XVIII, East Zone, Karachi and another 1988 P T D 206
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Act, 1922
|
| Sections |
53,
59(1),
62,
65,
147(a)
|