| Case ID |
2028ad08-55ff-437e-8755-bb7017d08a46 |
| Body |
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| Case Number |
I.T.As. Nos. 4629/1-8 and 5271/1-13 of 1986-87 |
| Decision Date |
Jan 19, 1989 |
| Hearing Date |
Nov 29, 1988 |
| Decision |
The Income Tax Appellate Tribunal ruled in favor of the assessee, stating that the Income Tax Officer had no justification to reject the trading results of the assessee's cold storage business. The Tribunal found that the major expenses were verifiable and that the declared capacity of the cold storage was reasonable. The order of the Income Tax Officer was overturned, and the declared receipts of Rs. 8,43,212 were accepted. The Tribunal emphasized that the I.T.O.'s estimates were based on guesswork without sufficient evidence to support them. |
| Summary |
This case revolves around the assessment of income tax for a cold storage business run by a registered firm. The Tribunal emphasized the importance of verifiable evidence in tax assessments and ruled against arbitrary estimates made by the Income Tax Officer. The decision highlighted the need for proper documentation and the acceptance of declared receipts when substantiated by credible evidence. The ruling serves as a precedent for future income tax cases, reinforcing the principles of fair assessment and the importance of maintaining accurate records. Key terms include 'Income Tax Ordinance', 'cold storage', 'verifiable expenses', and 'trading results'. The outcome of this case is significant for businesses involved in similar operations, ensuring that their declared income and expenses are recognized and accepted by tax authorities. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Mian Abdul Khaliq, Judicial Member,
Mian Muhammad Wasim, Accounted Member
|
| Lawyers |
Munir Qureshi, A.C./D.R. for Appellant,
F.R. Hashmi for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1989 SLD 90,
1989 PTD 668
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
32
|