| Case ID |
14d6943b-532b-42eb-8a21-c80224e7130c |
| Body |
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| Case Number |
I.T.As. Nos.1482/KB, 1483/KB, 1484/KB of 1997-98 |
| Decision Date |
Mar 17, 1998 |
| Hearing Date |
Mar 10, 1998 |
| Decision |
The Income Tax Appellate Tribunal ruled that the exemption granted under clause 125(B) of the Income Tax Ordinance, 1979 was erroneous and prejudicial to revenue. The appeals were dismissed, and the exemption was withdrawn due to non-fulfillment of necessary conditions regarding the establishment and commencement of commercial production of the industrial undertaking. The court emphasized that each assessment year is independent, and prior concessions can be revoked if subsequent assessments reveal non-compliance with the stipulated conditions. |
| Summary |
This case revolves around the Income Tax Ordinance, 1979, particularly focusing on the exemption provided under clause 125(B) for industrial undertakings. The Income Tax Appellate Tribunal reviewed the appeals related to the erroneous granting of exemptions to the appellant, which was found to be prejudicial to revenue. The Tribunal, led by Chairman Muhammad Mujibullah Siddiqui and Accountant Member Muhammad Mahboob Alam, emphasized the independence of each assessment year, highlighting that exemptions can be revoked if the conditions are not met in subsequent years. The decision clarifies the wide powers held by the IAC under section 66-A to modify or cancel assessments, reinforcing the principle that tax assessments must be based on the facts of each specific year. This ruling is significant for taxpayers and practitioners, as it underscores the importance of compliance with tax regulations and the procedural rigor required for maintaining exemptions. The case also references PLD 1990 SC 1156, further establishing legal precedents regarding tax assessments and exemptions. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Muhammad Mujibullah Siddiqui (Chairman),
Muhammad Mahboob Alam (Accountant Member)
|
| Lawyers |
Mr. Amanullah Sattar,
Mr. Athar Jaffri
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1998 SLD 1098 = 1998 PTD 2078
|
| Other Citations |
PLD 1990 SC 1156 = 1990 PTD 768
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
66A,
125(B),
80D,
62
|