Case ID |
1a5347ce-adf6-4254-bcad-a127cb9bc960 |
Body |
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Case Number |
I.TA. No. 879/LB of 1988 89 |
Decision Date |
Sep 24, 1989 |
Hearing Date |
Apr 22, 1989 |
Decision |
The case revolves around the assessment year 1984-85 concerning an individual engaged in wholesale cloth business. Initially, the assessee's income of Rs. 23,700 was accepted under the self-assessment scheme. However, subsequent scrutiny revealed undisclosed foreign remittances and discrepancies in the wealth statement. The Income Tax Officer (ITO) reopened the assessment under Section 65 of the Income Tax Ordinance, obtaining approval from the Inspecting Assistant Commissioner (IAC). The reassessment led to significant additions to the income, which the assessee contested, arguing procedural irregularities and lack of jurisdiction. The tribunal upheld the ITO's actions, emphasizing compliance with legal requirements and the validity of the notice issued. However, the tribunal modified the reassessment, restoring the business income to the original amount of Rs. 23,700, as the revised income determination lacked sufficient basis. Thus, the appeal partially succeeded, showcasing the importance of substantiating income declarations in tax assessments. |
Summary |
This case highlights the intricate processes involved in tax assessments under the Income Tax Ordinance, 1979, specifically focusing on the self-assessment scheme and the procedural requirements for reopening assessments. The case emphasizes the significance of accurate income declarations and the consequences of undisclosed foreign remittances. The tribunal's decision reflects a balanced approach, recognizing the need for tax compliance while also addressing the procedural safeguards afforded to taxpayers. The legal principles established in this case are relevant for practitioners in tax law, providing insights into the interpretation of statutory provisions and the importance of adhering to procedural norms in tax assessments. Keywords such as 'Income Tax Ordinance', 'tax assessment', 'self-assessment scheme', and 'tax compliance' are pivotal for understanding the legal landscape surrounding income taxation in Pakistan. |
Court |
Appellate Tribunal Inland Revenue
|
Entities Involved |
|
Judges |
Mian Abdul Khaliq,
Inam Ellahi Sheikh
|
Lawyers |
Sh. Rashid Ahmed,
Mujahid Akbar
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Petitioners |
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Respondents |
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Citations |
1990 SLD 73,
1990 PTD 600,
(1990) 62 TAX 11
|
Other Citations |
1989 PTD (Trib.) 150,
1988 PTD (Trib.) 800
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Laws Involved |
Income Tax Ordinance, 1979
|
Sections |
65(2),
13(1)(aa),
61,
63,
65
|