| Case ID |
0f76dbb3-b7ee-4ee9-b56b-535f020601d8 |
| Body |
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| Case Number |
I.T.A. No.1070/KB/2021 |
| Decision Date |
Jun 20, 2022 |
| Hearing Date |
Apr 05, 2022 |
| Decision |
The tribunal concluded that the officer's actions violated the fundamental principles of justice and the rights guaranteed under Article 10A of the Constitution of Pakistan, 1973. The officer failed to provide adequate opportunity for the appellant to be heard and rushed through the proceedings, leading to unjustified amendments of assessments. Consequently, the tribunal quashed the amended orders based on the established precedents from the High Courts. The case was remanded for further proceedings, emphasizing the importance of fair hearings and adherence to legal standards in tax assessments. |
| Summary |
This case revolves around M/S. Sanghar Sugar Mills Ltd's appeal against the Commissioner Inland Revenue's tax assessment for the tax year 2015. The appellant, a public limited company engaged in manufacturing sugar, faced an audit and subsequent penalties imposed due to alleged non-compliance with tax regulations. The tribunal's decision underscored the necessity for proper procedural conduct during audits, especially during extraordinary circumstances like the COVID-19 pandemic. The tribunal highlighted the importance of allowing taxpayers sufficient time and opportunity to present their case, thereby ensuring adherence to the principles of natural justice. This ruling is significant for taxpayers and tax authorities alike, as it reinforces the need for transparency and fairness in tax assessments. The case cites multiple provisions of the Income Tax Ordinance, 2001, emphasizing the legal standards necessary for valid tax assessments. This outcome serves as a precedent for similar cases, ensuring that the rights of taxpayers are safeguarded against arbitrary actions by tax authorities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/S. SANGHAR SUGAR MILLS LTD, KARACHI,
THE COMMISSIONER INLAND REVENUE, AUDIT-I, LTO, KARACHI
|
| Judges |
MUHAMMAD SHARIF AWAN, ACCOUNTANT MEMBER,
SARDAR M. AJAZ KHAN, JUDICIAL MEMBER
|
| Lawyers |
Mr. Muhammad Faheem Bhayo, Advocate for the Appellant,
Mr. Mirza Nasir Ali, DR., for the Respondent
|
| Petitioners |
M/S. SANGHAR SUGAR MILLS LTD, KARACHI
|
| Respondents |
THE COMMISSIONER INLAND REVENUE, AUDIT-I, LTO, KARACHI
|
| Citations |
2023 SLD 2114,
(2023) 128 TAX 129
|
| Other Citations |
2019 PTD 1839,
1992 PTD 726,
2018 PTD 388 (Trib.),
2010 PTD 1112,
2017 PTD 686,
2018 PTD 1444,
(2016) 113 TAX 19 (Trib),
2004 PTD 868,
2021 PTD 1182 (S.C. PAK),
2020 PTD (Trib.) 359,
Habib Bank v/s CIT reported as 2009 PTD 443,
2018 PTD (Trib) 1344,
2013 PTD 1659 (Sindh HC),
PTCL 2016 CL 615
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
3(1A),
21(c),
28(1)(a),
34(3),
39(1),
111,
111(1)(a),
111(1)(d),
122(1),
174(2),
177(6A),
218
|