Legal Case Summary

Case Details
Case ID 224e52e5-af6d-476d-81ca-12a9ed4e19ee
Body View case body.
Case Number ITA.No.235/IB/2012
Decision Date Jan 24, 2013
Hearing Date Nov 16, 2012
Decision The instant appeal filed by the department is directed against an order dated 11.01.2012 passed by learned CIR (Appeal-Ill), Islamabad relating to tax year 2009. The tribunal decided not to interfere in the CIR(A) order and rejected the appeal of the department. The taxpayer derived income from running a cloth store and had filed a return declaring net income at Rs. 130,000/-. An audit notice was issued, but no one appeared. The amended assessment estimated the sales at Rs. 5,000,000/-. The Appeal Commissioner vacated the amended assessment order, finding the estimation based on whims and surmises with no substantial ground. The findings of the learned CIR (A) were in accordance with law, leading to the rejection of the appeal.
Summary This case, adjudicated by the Appellate Tribunal Inland Revenue, revolves around the Income Tax Ordinance, 2001, specifically sections 122 and 122(9). The taxpayer, running a cloth store, faced an amended assessment due to non-appearance during audits, leading to a substantial estimation of sales. The Appeal Commissioner vacated the order, citing lack of evidence and improper estimation. The tribunal upheld this decision, emphasizing the importance of substantiated claims in tax assessments. This case highlights the critical intersection of tax law and due process, underscoring the need for transparency and evidence in financial declarations. Keywords: Income Tax Ordinance, tax assessments, appellate tribunal, judicial review, tax law compliance.
Court Appellate Tribunal Inland Revenue
Entities Involved Not available
Judges MUHAMMAD, JAHANDAR
Lawyers Not available
Petitioners COMMISSIONER INLAND REVENUE, ZONE1, R.T.O, RAWALPINDI
Respondents SH.MUHAMMAD ASGHAR
Citations 2013 SLD 126
Other Citations Not available
Laws Involved Income Tax Ordinance, 2001
Sections 122, 122(9)