| Case ID |
22e7ef16-66af-4d38-9379-c8f596743dc3 |
| Body |
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| Case Number |
I.T.As. Nos. 176/IB to 178/IB of 2001-2002 |
| Decision Date |
Feb 17, 2005 |
| Hearing Date |
|
| Decision |
The appeals filed by the assessee were directed against the order of the IAC finalized under section 66A of the Income Tax Ordinance, 1979. The Tribunal found that the non-filing of audit statements was neither erroneous nor prejudicial to the interest of revenue, as the paid-up capital was below the threshold requiring audited statements. The Tribunal emphasized that doubts about the genuineness of declared income do not equate to an erroneous assessment. The Tribunal further highlighted that poor quality of assessments and inexperience of the Assessing Officer do not constitute grounds for cancellation of an assessment. The IAC's cancellation of the assessments was confirmed, and the appeals were dismissed, reflecting the importance of proper inquiry and documentation in tax assessments. |
| Summary |
This case revolves around the Income Tax Appellate Tribunal's decision on appeals related to the Income Tax Ordinance, 1979. The key issues pertained to the powers of the Inspecting Additional Commissioner to revise orders made by the Deputy Commissioner, particularly concerning the non-filing of audited accounts. The Tribunal concluded that the lack of audit statements did not constitute an error or prejudice to revenue interests, especially given the company's paid-up capital was less than the prescribed limit. The ruling underscores the significance of thorough assessments and the role of the Assessing Officer in verifying claims made by taxpayers. The Tribunal's decision highlighted that doubts regarding income declarations must be substantiated with evidence before deeming an assessment erroneous. This ruling serves as a critical reference for tax law practitioners and highlights the procedural requirements for tax assessments under the Income Tax Ordinance. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
KHAWAJA FAROOQ SAEED,
EHSAN-UL-HAQ
|
| Lawyers |
Shahid Pervez Jami,
C.A. Habib, F.C.A.,
Rafaqat Ali Syed, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2006 SLD 87,
2006 PTD 1225,
(2006) 93 TAX 152
|
| Other Citations |
2000 PTD (Trib.) 277,
2000 PTD 1201,
Geevee Enterprises v. Additional Commissioner of Income Tax Delhi and others 1975 ITR 375,
Rampyari Devi Saragoi v. Commissioner of Income Tax; 1990 PTD 526
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
66,
66-K,
66A,
62
|