| Case ID |
13663aa9-7a0e-4194-b26f-2749005f9013 |
| Body |
View case body. Login to View |
| Case Number |
Tax Reference No. 13 of 1966 |
| Decision Date |
Mar 01, 1973 |
| Hearing Date |
|
| Decision |
The Lahore High Court upheld the findings of the Income-tax Appellate Tribunal regarding the assessment of gross profits of Uberoi Co-operative Sports Ltd. for the assessment years 1957-58 and 1958-59. The court agreed that the rejection of the declared accounts by the Income-tax Officer was reasonable due to the low gross profit rates reported by the assessee, which were inconsistent with the past history of the business. The court found that the Tribunal's decision to apply a gross profit rate of 15% for foreign sales was justified, considering the introduction of incentive schemes that affected profit margins. Furthermore, the court ruled that the questions posed by the petitioner were primarily factual and did not warrant legal interpretation, affirming the Tribunal's conclusions based on the evidence presented. |
| Summary |
In the case of Uberoi Co-operative Sports Ltd. vs. Commissioner of Income Tax, the Lahore High Court addressed the appeals regarding income tax assessments for the years 1957-58 and 1958-59. The main issues revolved around the rejection of the petitioner's declared accounts by the Income-tax Officer, who deemed the gross profit rates too low compared to the business's historical performance. The Tribunal upheld the Income-tax Officer's findings and applied a gross profit rate of 15% for foreign sales, which the petitioner contested. The court ultimately determined that the Tribunal had made its decision based on adequate evidence and that the questions raised did not constitute legal issues, thus rejecting the petitioner's requests to refer the matter for further legal interpretation. This case underscores the importance of historical performance in tax assessments and the discretion afforded to tax authorities in determining acceptable profit rates. |
| Court |
Lahore High Court
|
| Entities Involved |
COMMISSIONER OF Income tax,
UBEROI CO-OPERATIVE SPORTS LTD.
|
| Judges |
MUHAMMAD AKRAM,
MUHAMMAD AFZAL CHEEMA
|
| Lawyers |
Muhammad Amin Butt,
Muhammad Afzal Lone
|
| Petitioners |
UBEROI CO-OPERATIVE SPORTS LTD., SIALKOT
|
| Respondents |
COMMISSIONER OF Income tax, RAWALPINDI ZONE (WEST PAKISTAN), RAWALPINDI
|
| Citations |
1973 SLD 324,
(1973) 27 TAX 218
|
| Other Citations |
P.L.D. 1967 Karachi 561,
(1937) 5 I.T.R. 170,
A.I.R. (1933) P.S. 198,
P.L.D. (1957) Karachi 61,
P.L.D. (1971) Lahore 559
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
66(2),
33,
13,
23(4)
|