Legal Case Summary

Case Details
Case ID 0c2b0fdd-b175-4ba5-836a-9347571c7ef4
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Case Number ITA No. 294/LB/2012
Decision Date Oct 06, 2016
Hearing Date Sep 27, 2016
Decision The Tribunal found that the taxpayer failed to provide adequate proof of tax deductions against payments made under the heads of rent rates, legal and professional charges, and advertisement. Consequently, the Tribunal vacated the order of the learned CIR(A) and confirmed the order of the Additional CIR, thereby ruling that the taxpayer was in default for not deducting and depositing the required tax. The appeal filed by the department was thus disposed of in favor of the Additional CIR's decision.
Summary The case involved an appeal by the Commissioner Inland Revenue against the decision of the learned CIR(A) who had deleted certain additions made under the Income Tax Ordinance, 2001. The appellant, a public limited company, had declared a loss for the tax year 2005 and was subject to a deemed assessment under Section 120. The Additional CIR amended this assessment based on perceived errors prejudicial to revenue interests. The learned CIR(A) ruled in favor of the taxpayer, leading to an appeal by the department. The Tribunal ultimately upheld the Additional CIR's order, emphasizing the taxpayer's failure to substantiate claims for tax deductions. This case highlights the importance of adhering to tax regulations and maintaining proper documentation to avoid penalties and ensure compliance with the Income Tax Ordinance. Keywords such as tax deductions, income tax ordinance, and legal compliance are essential for SEO optimization, providing insight into the legal nuances of tax law and its implications for businesses.
Court Appellate Tribunal Inland Revenue
Entities Involved Standard Fruits Limited
Judges CH. SHAHID IQBAL DHILLON, JUDICIAL MEMBER, RAANA AHMAD, ACCOUNTANT MEMBER
Lawyers Mr. Faisal Kambo
Petitioners Commissioner Inland Revenue, ZonEVIII, RTO-II, Lahore
Respondents M/S. Standard Fruits Limited, Multan Road, Lahore
Citations 2017 SLD 29
Other Citations 2002 SLD 56, 2002 PTD 1
Laws Involved Income Tax Ordinance, 2001
Sections 21(c), 50(4)(a), 52, 86, 120, 122(5A), 122(9)