| Case ID |
20e6aab6-25f0-47bc-9039-9996b0ae4c60 |
| Body |
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| Case Number |
I.TA. No. 171(PB) of 1993-94 |
| Decision Date |
Nov 21, 1994 |
| Hearing Date |
Oct 05, 1994 |
| Decision |
The appeal was directed against the order dated 22-12-1995 of the Commissioner of Income-tax (Appeals-1), Peshawar, which rejected the appellant's appeal. The Tribunal found that the selection of the case for total audit under para. 4(ii) of the Self-Assessment Scheme was unjustified due to lack of definite information based on material evidence. The advertisement published by the assessee was considered as definite information; however, the Revenue failed to establish a legitimate suspicion of gross understatement of income. The Tribunal emphasized that mere suspicion is insufficient for audit selection under the Self-Assessment Scheme. The appeal was accepted, and the action of the Revenue in selecting the case for normal assessment was deemed ineffective. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, 1979, specifically regarding the Self-Assessment Scheme and the criteria for selecting cases for audit. The Appellate Tribunal Inland Revenue examined whether the selection of the appellant's case for audit was justified based on 'definite information' as required by the law. The key issue was whether the information derived from an advertisement constituted sufficient grounds for suspicion of gross understatement of income. The Tribunal ruled that while the advertisement was informative, it did not directly connect to the declared income, thus failing to meet the threshold for audit selection. This case highlights the balance between taxpayer rights and revenue authority powers, emphasizing the necessity for concrete evidence before initiating audit procedures. Keywords include 'Income Tax Ordinance', 'Self-Assessment Scheme', 'audit selection', 'definite information', and 'gross understatement of income'. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
Nasim Sikandar,
Fazal-ur-Rehman Khan,
Muhammad Iqbal
|
| Lawyers |
Abdur Rauf Rohaila,
Qaisar Ali Khan
|
| Petitioners |
Abdur Rauf Rohaila
|
| Respondents |
Qaisar Ali Khan
|
| Citations |
1995 SLD 107,
1995 PTD 1403,
(1995) 71 TAX 1
|
| Other Citations |
1993 PTD 1108,
1993 SCMR 1108,
1993 PTD 766,
1993 SCMR 1232,
1993 PTD 1007,
1979 119 ITR 996,
1995 71 Tax 177,
1958 34 ITR 275
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
59,
65
|