| Case ID |
14bbb1b3-e75d-42ae-9274-8d7ebbb90aa0 |
| Body |
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| Case Number |
I.T.A. Nos. 179, 180 and 181 of 1967-68 |
| Decision Date |
Mar 22, 1968 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal determined that the assessee, an Association of Persons (AOP) running a brick kiln, had not maintained accounts for the assessment years 1963-64 to 1965-66. The Tribunal upheld the Income-tax Officer's decision to apply a gross profit rate of 30% based on past history. However, after considering appeals and arguments from both sides, the Tribunal reduced the rate to 25% based on evidence presented. The Tribunal concluded that the question of whether the learned Appellate Tribunal was justified in determining the profit rate was not a question of law suitable for referral to the High Court. The Tribunal emphasized that the findings of fact based on evidence cannot be challenged in higher courts unless there is a lack of material evidence, which was not the case here. Therefore, the applications for reference were refused. |
| Summary |
This case revolves around the assessment of gross profit rates applied to an AOP running a brick kiln, as per the Income Tax Act, 1922. The primary legal issue was whether the Tribunal's decision to lower the profit rate from 30% to 25% was justified based on the available evidence, particularly in the absence of maintained accounts. The Tribunal's findings highlighted that while the applicant argued for a lower rate based on parallel cases, the evidence supported the decision to apply a flat rate. This case underscores the importance of historical data and material evidence in tax assessments. The ruling illustrates the principle that findings based on evidence do not typically raise legal questions warranting higher court review. Legal professionals should be aware of the implications of this decision, particularly regarding the sufficiency of evidence in tax-related disputes, as it can significantly affect the outcomes of similar cases. Keywords such as 'Income Tax Appellate Tribunal', 'gross profit rate', 'tax assessment', and 'legal principles in taxation' are essential for understanding the implications of this case. |
| Court |
Income Tax Appellate Tribunal, Lahore
|
| Entities Involved |
Not available
|
| Judges |
K. Salahuddin, Accountant Member,
H.U. Siddiqi, Judicial Member
|
| Lawyers |
Muhammad Idrees, Advocate,
Nasim Sabir, PTS, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1969 SLD 732,
(1969) 19 TAX 74,
1969 PTD 75
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922,
Income-tax Ordinance, 1979
|
| Sections |
66(1),
13,
136(1)
|