Legal Case Summary

Case Details
Case ID 1695a8b7-518d-4268-8bc5-95df9880a683
Body View case body.
Case Number I.T.A. No.3069/LB of 1991-92
Decision Date Jan 04, 1996
Hearing Date Nov 06, 1995
Decision The Tribunal concluded that the appeal by the assessee was only partially successful. While the estimates made for import and local sales were found to be on the higher side, the primary complaint regarding the rejection of the declared version was not substantiated. The assessing officer's estimates were justified due to the lack of proper documentation provided by the assessee. The Tribunal confirmed that the total income was rightfully assessed at Rs. 1,71,050 compared to the returned amount of Rs. 57,999. The appeal led to a slight reduction in the estimated sales but upheld the overall assessment's legitimacy.
Summary In the case of I.T.A. No.3069/LB of 1991-92, the Appellate Tribunal Inland Revenue addressed issues surrounding the Income Tax Ordinance, 1979, specifically Section 22, which deals with income from business and the estimation of sales and gross profit rates (G.P. rates). The assessee, engaged in the trade of nylon ropes, had reported substantial sales figures but failed to substantiate these with adequate documentation. The assessing officer rejected the declared sales and estimated higher figures based on the evidence presented. The Tribunal, led by Judicial Member Nasim Sikandar and Accountant Member Shariq Mehmood, found the assessing officer's estimates reasonable given the circumstances. The Tribunal's decision emphasized the importance of proper documentation in tax assessments and affirmed the legitimacy of the assessment process, reinforcing the standards set by the Income Tax Ordinance. This case underscores the critical nature of compliance and documentation in business operations to avoid adverse tax implications.
Court Appellate Tribunal Inland Revenue
Entities Involved Not available
Judges Nasim Sikandar, Shariq Mehmood
Lawyers A. Masood Kh., Qaiser M. Yahya
Petitioners Not available
Respondents Not available
Citations 1997 SLD 250, 1997 PTD 2124
Other Citations Not available
Laws Involved Income Tax Ordinance, 1979
Sections 22