| Case ID |
1ee582dc-c054-40da-a6df-6397e8900c7a |
| Body |
View case body. Login to View |
| Case Number |
I.T.A. Nos. 1601, 1602, 1603, and 1604 of 1967-68 |
| Decision Date |
Jul 27, 1968 |
| Hearing Date |
|
| Decision |
The appeals by the Department were dismissed as the Income-tax Officer's attempt to convert the assessee's cash system of accounting to a mercantile system was found to be incorrect. The Appellate Assistant Commissioner's decision to exclude the amounts added by the Income-tax Officer was upheld, confirming that there were no defects in the accounts maintained by the assessee. The case emphasized the importance of the accounting method employed by the assessee and clarified that the Income-tax Officer could not impose a different accounting system without valid justification. |
| Summary |
In the case concerning Income Tax Appellate Tribunal's decisions on I.T.A. Nos. 1601, 1602, 1603, and 1604 of 1967-68, the core issue revolved around the rejection of accounts maintained by the assessee under the cash system. The tribunal ruled that the Income-tax Officer had no grounds to dismiss the accounts as the assessee had followed a recognized accounting method, with no defects found in the financial records presented. The legal implications of the Companies Act and Income Tax Act were significant in determining the outcome, as the tribunal emphasized adherence to proper accounting practices and the rights of the taxpayer to maintain their chosen method of accounting. This case serves as a precedent in tax law, particularly regarding the treatment of accounting systems and the authority of tax officers in assessing taxpayer records, highlighting the balance between compliance and taxpayer rights. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
A. AHMED, ACCOUNTANT MEMBER,
M. EUSUF, JUDICIAL MEMBER
|
| Lawyers |
A. Rahim, D.R.,
S.M. Hossain, Advocate
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1970 SLD 753,
(1970) 21 TAX 18,
1970 PTD 12
|
| Other Citations |
Nasir Industries v. Commissioner of Income-tax, Karachi (1967) P.T.D. page 205,
Punjab Trading Company Ltd. v. Commissioner of Income-tax, Simla (1960) 38 I.T.R. page 579
|
| Laws Involved |
Companies Act, (VII of 1913),
Income Tax Act, 1922
|
| Sections |
130,
13,
23
|