| Case ID |
1a3cbf38-2373-4f74-b52b-44d97e4fd853 |
| Body |
View case body. Login to View |
| Case Number |
I.T.A. No.19/IB and MA(AG) No.38A/IB of 2009 |
| Decision Date |
Jul 18, 2009 |
| Hearing Date |
|
| Decision |
The appeal filed by the assessee against the order dated 15-12-2008 passed by CIT(A-II) Islamabad was allowed. The Income Tax Appellate Tribunal found that the Assessing Officer's addition of unexplained income was not maintainable as it was not made in the immediately preceding year, contrary to the provisions of section 111(2) of the Income Tax Ordinance, 2001. Furthermore, the assessment order, which was passed on a public holiday, was annulled as it was deemed unlawful. The Tribunal emphasized that the taxpayer provided sufficient documentary evidence, including bank loans, to justify the sources of income and therefore rejected the Assessing Officer's addition under section 111. The Tribunal vacated the orders of the authorities below and deleted the impugned addition, reaffirming the taxpayer's right to revise their wealth statement to present an accurate financial picture. |
| Summary |
In the case of Messrs AYESHA LASANI MODEL SCHOOL vs C.I.T., RAWALPINDI, the Income Tax Appellate Tribunal addressed critical issues concerning the Income Tax Ordinance, 2001, particularly sections 39, 111, and 177. The case revolved around an appeal against an assessment order that included significant additions to the taxpayer's income based on unexplained sources. The Tribunal highlighted the procedural impropriety of the Assessing Officer in making additions without proper evidence and in violation of legal timelines. The ruling underscored the importance of adhering to the legal framework governing tax assessments and the rights of taxpayers to present revised wealth statements. The decision is significant for tax practitioners, highlighting essential legal principles regarding the treatment of unexplained income, the timing of assessments, and the validity of orders passed during public holidays. This case serves as a precedent for similar tax disputes, reinforcing the need for thorough documentation and adherence to procedural norms in tax assessments. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
MUNSIF KHAN MINHAS, JUDICIAL MEMBER,
ISTATAAT ALI, ACCOUNTANT MEMBER
|
| Lawyers |
Rizwan Yaqoob,
Atif Wahed,
Sardar Taj Muhammad Khan DR
|
| Petitioners |
Messrs AYESHA LASANI MODEL SCHOOL, RAWALPINDI
|
| Respondents |
C.I.T., RAWALPINDI
|
| Citations |
2015 SLD 1604,
2015 PTD 408
|
| Other Citations |
2006 PTD 2662 (Trib.),
2008 PTD (Trib.) 1007,
Mohsin Raza v. Chairman FBR, and others 2005 PTD 152,
2005 PTD 1974,
2009 SCMR 339,
2009 PTD 377 (Trib.),
99 Tax 350 (Trib.)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
16(3),
39,
39(1),
111,
111(2),
116,
120,
122(5),
177,
177(4)
|