Legal Case Summary

Case Details
Case ID 1b69862f-6054-4b8b-a695-494a8eb7f1a4
Body View case body.
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