| Case ID |
0a19f057-923a-460e-96db-1e142648bab4 |
| Body |
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| Case Number |
I.T.A. No. 185/LB of 1993-94 |
| Decision Date |
May 09, 1997 |
| Hearing Date |
Apr 29, 1997 |
| Decision |
The appeal was filed by the assessee contesting the cancellation of the order under section 66-A. The facts indicate that the assessee, having obtained a factory on lease, had an income assessed by the department. The assessment of income was selected for a total audit under the Self-Assessment Scheme, which revealed a substantial difference between declared and assessed income. The I.A.C. deemed the assessment erroneous and canceled it, citing the lease as fictitious. However, it was highlighted that the department had accepted this lease arrangement in prior years, thus creating a legal precedent. Ultimately, the decision reinstated the order of the Assessing Officer, canceling the prior order under section 66-A, thereby affirming the validity of the lease arrangement and the assessment made. |
| Summary |
This case revolves around the appeal by the assessee against the cancellation of an income tax assessment order. The key issues include the validity of the lease arrangement and the subsequent assessment of income under the Income Tax Ordinance, 1979. The tribunal examined whether the I.A.C.'s cancellation of the assessment was justified, especially considering the department's acceptance of similar arrangements in previous years. The decision underscores the importance of legal consistency and the principles of estoppel in tax law, particularly in self-assessment scenarios. This case serves as a significant reference point for future tax assessments and appeals, particularly regarding lease agreements and their treatment under the law. Keywords: Income Tax Ordinance, assessment appeal, legal precedent, lease arrangement, tax law. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/s. Al-Imran Textile and Processing Mills (Pvt.) Ltd.
|
| Judges |
KHAWAJA FAROOQ SAEED (JUDICIAL MEMBER),
ABDUL MALIK (ACCOUNTANT MEMBER)
|
| Lawyers |
Ch. Bashir Ahmad,
Ch. Safdar Hussain
|
| Petitioners |
Ch. Bashir Ahmad
|
| Respondents |
Ch. Safdar Hussain, D.R.
|
| Citations |
1998 SLD 95,
1998 PTD 769
|
| Other Citations |
I.T.A. No.8001/LB of 1991-92,
I.T.A. No.2125/LB of 1992-93
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
66A,
59
|