| Case ID |
1042b136-7d6c-4327-b14f-432ef10b332a |
| Body |
View case body. Login to View |
| Case Number |
LT.As Nos 3783/LB to 3785/LB of 1995 |
| Decision Date |
Dec 14, 1995 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal Inland Revenue held that the reopening of the assessments for the years 1987-88 to 1989-90 was not in accordance with the law. The tribunal emphasized that once the Assessing Officer had accepted the explanations provided by the assessee regarding income sources, a subsequent reopening based on change of opinion was impermissible. The tribunal found that the additions made by the Assessing Officer under various sections of the Income Tax Ordinance were unjustifiable and lacked sufficient evidence. The tribunal cancelled the assessments made after reopening, reinforcing the principle that taxpayers should not be subjected to arbitrary changes in assessment without valid grounds. The tribunal's decision highlighted the necessity for transparency and fairness in tax assessments, ensuring that once a taxpayer has complied with the requirements, they should not face undue scrutiny without just cause. |
| Summary |
In the case before the Appellate Tribunal Inland Revenue, the taxpayer, an individual involved in coal and soap dealings, contested the reopening of assessments for the years 1987-88 to 1989-90. The tribunal examined the legality of the Assessing Officer's actions, which were based on alleged concealment of income and discrepancies in property valuation. The tribunal found that the taxpayer had provided satisfactory explanations for his income sources. It ruled that the reopening of assessments constituted a change of opinion, which is not permissible under tax law. The court's decision stressed the importance of protecting taxpayers from arbitrary administrative actions and underscored the need for due process in tax assessments. The ruling aligns with established legal principles that prevent revenue authorities from reopening cases without valid justification, ensuring taxpayers' rights are upheld. This case serves as a significant reference point for future disputes regarding tax assessments and the legal standards required for reopening cases. This case's implications resonate within current tax law discussions, emphasizing taxpayer rights and the necessity for clear, evidence-based decision-making by tax authorities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
Nasim Sikandar
|
| Lawyers |
M.S. Babar,
Qaiser M. Yahya
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1997 SLD 111,
1997 PTD 859
|
| Other Citations |
1993 PTD 766,
1993 PTD 1,
(1994) 69 Tax 258,
Central Insurance Company v. C.B.R. (1993) 68 Tax 86
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
59,
65,
13(1)(aa),
13(1)(d),
13
|