| Case ID |
10170fe6-c9a4-4137-a1b3-35949841aa66 |
| Body |
View case body. Login to View |
| Case Number |
I.T.A. No.667/IB of 2011 |
| Decision Date |
Jan 24, 2012 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal ruled that the order passed under section 122-C of the Income Tax Ordinance, 2001 is indeed appealable under section 127. The Tribunal emphasized that any order enhancing the assessment or increasing the taxpayer's liability is subject to appeal. The appeal was accepted, allowing the taxpayer to contest the assessment completed under the disputed section, which was argued to be illegal and unjustified. The Tribunal recognized that the provisions of section 122-C cannot be applied retrospectively and maintained that the taxpayer's rights must be protected under the existing laws. The decision also pointed out that the department retains the authority to scrutinize the filed return if they choose to do so, as the limitation period is still open for them. |
| Summary |
The case revolves around the appeal filed by Drugs Services against the order of the Commissioner of Inland Revenue (CIR) regarding the applicability of section 122-C of the Income Tax Ordinance, 2001. The Tribunal discussed the validity of section 122-C, which was introduced through the Finance Ordinance and ruled that it could not be applied retrospectively to prior tax years. The decision highlighted that any order increasing a taxpayer's liability is appealable under section 127. This ruling reinforces the taxpayer's rights under the Income Tax Ordinance, ensuring that they have a fair chance to contest any adverse decisions affecting their financial obligations. The case underscores the importance of adhering to the procedural requirements set forth in tax legislation and the need for clear communication regarding the appealability of tax orders, which is crucial for maintaining taxpayer confidence in the tax administration system. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
DRUGS SERVICES,
C.I.R., R.T.O.
|
| Judges |
MUNSIF KHAN MINHAS, JUDICIAL MEMBER,
ASAD ALI JAN, ACCOUNTANT MEMBER
|
| Lawyers |
|
| Petitioners |
DRUGS SERVICES, RAWALPINDI
|
| Respondents |
C.I.R., R.T.O., RAWALPINDI
|
| Citations |
2012 SLD 800,
2012 PTD 880
|
| Other Citations |
1999 PTD 4061,
2005 PTD 1316
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
122C,
127
|