| Case ID |
0bf7cee2-ce2b-45ca-8cb9-6276ea320b2e |
| Body |
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| Case Number |
I.T.A. No. 1546/LB of 2009 |
| Decision Date |
Feb 01, 2010 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal canceled the order of the Taxation Officer under sections 182(1)/114 of the Income Tax Ordinance, 2001, stating that the imposition of the penalty was unjustified. The Tribunal found that reasonable cause for the delay in filing the return was established, as the records were with the auditors. The Tribunal emphasized that the purpose of a penalty is to deter future defaults, not to serve as a revenue generation measure. The decision of the First Appellate Authority was vacated, and the appeal was allowed. |
| Summary |
In the case of I.T.A. No. 1546/LB of 2009, the Appellate Tribunal Inland Revenue addressed the appeal concerning a penalty imposed for late filing of income tax returns under the Income Tax Ordinance, 2001. The appellant, represented by Muhammad Iqbal Hashmi, challenged the validity of the penalty confirmed by the learned CIT(A) on the grounds that it was imposed mechanically and without just cause. The Tribunal scrutinized the circumstances surrounding the late filing, noting that the appellant had filed the return shortly after receiving a notice from the Taxation Officer, which allowed a 30-day period for compliance. The Tribunal held that the penalty should only be levied when there is a lack of reasonable excuse, which was not the case here since the appellant's delay was due to their records being with the auditors. The Tribunal further reinforced that penalties should not be used as a tool for revenue generation and should serve the purpose of preventing future defaults. This decision highlights the importance of fairness in tax assessments and penalties. The Tribunal's ruling not only vacated the earlier penalty but also underscored the necessity of reasonable cause in tax compliance cases, establishing a precedent for future cases. The case is significant for taxpayers and their advocates, emphasizing the importance of due process and reasonable grounds in tax law proceedings. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Messrs Asim Textile Mills Ltd.
|
| Judges |
Jawaid Masood Tahir Bhatti
|
| Lawyers |
Muhammad Iqbal Hashmi,
Imran Raza Kazmi
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2010 SLD 75,
(2010) 101 TAX 344,
2010 PTD 1199
|
| Other Citations |
2004 PTD 1179
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
182,
182(1),
114,
114(4)
|