Legal Case Summary

Case Details
Case ID 05421ffd-fe2f-4ce1-bb45-ea08d6ae0493
Body View case body.
Case Number I.T.A. No.3245/LB of 1998
Decision Date Apr 29, 1999
Hearing Date Apr 13, 1999
Decision The appeal by the assessee was against the imposition of a penalty under section 108(b) of the Income Tax Ordinance, 1979 for failure to furnish required statutory statements. The Tribunal ruled that no penalty could be levied for non-filing under sections 50(1) and 50(4) since the appellant did not provide or hire services, and thus the provisions were not applicable. The Assessing Officer did not specify the section under which the statements were due. As a result, the penalty order was declared illegal and was cancelled.
Summary In the case concerning the Income Tax Ordinance, 1979, the Appellate Tribunal Inland Revenue reviewed the penalty imposed on the appellant for not furnishing statutory statements. The tribunal found that the penalties imposed under sections 50(1) and 50(4) were inappropriate as the appellant was not engaged in providing services that would necessitate such filings. The legal framework was carefully examined, highlighting that penalties can only be imposed under express provisions of law. The ruling emphasized the importance of specificity in legal statutes and the requirements for filing. This decision serves as a precedent for similar cases where penalties for non-compliance may be challenged based on the nature of the taxpayer's operations and the applicability of tax laws. The ruling is significant for tax practitioners and businesses, underscoring the necessity for clarity in tax law compliance and the potential for challenging penalties that do not adhere to established legal standards.
Court Appellate Tribunal Inland Revenue
Entities Involved Not available
Judges SYED NADEEM SAQLAIN, JUDICIAL MEMBER, INAM ELLAHI SHEIKH, ACCOUNTANT MEMBER
Lawyers A. H. Qamer, I.T.P. for Appellant, Khalid Aziz Bhanth, D.R. for Respondent
Petitioners Not available
Respondents Not available
Citations 1999 SLD 393 = 1999 PTD 2765
Other Citations 1998 PTD (Trib.) 3507
Laws Involved Income Tax Ordinance, 1979, Income Tax Rules, 1982
Sections 108(b), 50(1), 50(4), 61