| Case ID |
25d8a6d8-d3ad-4cb5-8264-ce7ce4164fcd |
| Body |
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| Case Number |
I.T.A. No.131/LB of 2008 |
| Decision Date |
Jul 31, 2009 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal vacated the order of the First Appellate Authority, restoring the amended assessment under section 122(1) of the Income Tax Ordinance, 2001. The Tribunal found that the annulment of the assessment based solely on technical flaws in the notice was unjustified, especially given that the taxpayer had not disclosed income from Messrs Ahmad Raza Abbas and Co. The decision emphasized that mere technical flaws do not invalidate an assessment if the tax charge is established. The Tribunal highlighted that the First Appellate Authority failed to address the merits of the case regarding non-disclosure of income. |
| Summary |
This case revolves around the appeal against an annulled assessment order under the Income Tax Ordinance, 2001. The taxpayer had filed a return declaring an income of Rs. 90,000, but the Assessing Officer discovered evidence of non-declared income from purchases made from Messrs Dawood Corporation. A notice was issued under section 122(9), which the taxpayer claimed was not served. The First Appellate Authority annulled the assessment based on alleged technical flaws in the notice. However, the Income Tax Appellate Tribunal restored the original assessment, arguing that technical defects do not negate the validity of the assessment when the underlying tax liability is clear. The case underscores the importance of proper notice service and the distinction between procedural errors and substantive tax obligations, ultimately favoring the revenue's position. It highlights the court's stance on the necessity of addressing actual income concealment over procedural technicalities in tax assessments. Keywords: Income Tax, Technical Flaws, Assessment, Taxpayer Rights, Tribunal Decisions. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
JAVAID MASOOD TAHIR BHATTI, JUDICIAL MEMBER,
ABDUL RAUF, ACCOUNTANT MEMBER
|
| Lawyers |
Mrs. Sabiha Mujahid, D.R. for Appellant
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2009 SLD 1304 = 2009 PTD 1974
|
| Other Citations |
1997 PTD 47,
CIT v. Abdul Ghani 2007 PTD 967,
Pakistan Fisheries Limited v. United Bank Limited PLD 1993 SC 109
|
| Laws Involved |
Income Tax Ordinance (XLIX of 2001),
Income Tax Rules, 2002
|
| Sections |
122(9),
122(1),
First Schedule, para. 2
|