| Case ID |
1b69862f-6054-4b8b-a695-494a8eb7f1a4 |
| Body |
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| Case Number |
I.T.A. No.7912/LB of 1996 |
| Decision Date |
Apr 23, 2003 |
| Hearing Date |
Nov 06, 2002 |
| Decision |
The Appellate Tribunal ruled that the First Appellate Authority had no jurisdiction to examine the merits of the Inspecting Additional Commissioner's exercise of revisionary jurisdiction under section 66-A of the Income Tax Ordinance, 1979. The Tribunal reinstated the order of the Assessing Officer, concluding that the gains from the sale of agricultural land constituted business profits rather than capital gains. The Tribunal clarified that the assessment order under section 62 was independent and appealable, and emphasized that the nature of the transactions indicated that the assessee was engaged in the business of buying and selling immovable property. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, 1979, particularly concerning the classification of gains from the sale of agricultural land. The Appellate Tribunal Inland Revenue examined whether the gains should be treated as business profits or capital gains. The Tribunal found that the original assessment by the Assessing Officer was valid and reinstated it, emphasizing that the taxpayer's activities indicated a business intent rather than a mere investment. The decision highlighted the importance of jurisdiction in tax matters and clarified that the First Appellate Authority had overstepped by addressing the merits of a revisionary order without proper appeal. This ruling reinforces the principles governing income tax assessments and the treatment of profits arising from property transactions. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
EHSAN-UR-REHMAN, JUDICIAL MEMBER,
MUHAMMAD MUNIR QURESHI, ACCOUNTANT MEMBER
|
| Lawyers |
Abdul Rasheed,
Bashir Ahmad Shad
|
| Petitioners |
Muhammad Iqbal Kh.
|
| Respondents |
Abdul Rasheed,
Bashir Ahmad Shad
|
| Citations |
2004 SLD 145,
2004 PTD 480,
(2003) 88 TAX 201,
(2004) 89 TAX 107
|
| Other Citations |
1990 PTD 155,
1992 PTD 1,
1984 MLD 262,
1989 PTD 460,
1975 PTD (Trib.) 6,
2001 PTD 1222
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
129,
66A,
62,
59(b),
134,
22,
27
|