| Case ID |
262be519-f244-4487-be6f-defe527083d7 |
| Body |
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| Case Number |
I.T.A. No. 38/KB of 1998-99 |
| Decision Date |
Dec 01, 1998 |
| Hearing Date |
|
| Decision |
The appeal was directed against the order dated 14-4-1988 by the learned Commissioner of Income-tax (Appeals) in Income-tax Appeal No. 624 relating to the assessment year 1991-97. The decision highlighted the invalidity of the reopening of assessments based on incorrect information regarding suppressed receipts. The Assessing Officer's reliance on wealth tax records for reopening assessments was deemed improper, as it amounted to a change of opinion, which is not permitted under the law. The Tribunal concluded that the Assessing Officer overstepped his jurisdiction by revising assessments without the necessary authority, leading to the conclusion that the reopening of the assessment was unjustified. Consequently, the appeal for the assessment year 1991-92 was allowed in favor of the appellant, restoring the factual and legal position as of the date the show-cause notice was issued. |
| Summary |
This case revolves around the reopening of an income tax assessment under the Income Tax Ordinance, 1979, specifically sections 65 and 62. The appellant, a private limited company involved in construction, faced disputes over the alleged suppression of receipts leading to a reassessment of income. The Appellate Tribunal scrutinized the procedural validity of the reopening, emphasizing that the Assessing Officer relied on incorrect information derived from wealth tax assessments. The Tribunal underscored the principle that previously available information cannot justify the reopening of an assessment, labeling the actions of the Assessing Officer as an overreach of jurisdiction. This ruling reinforces the significance of adhering to proper legal protocols in tax assessments and highlights the importance of accurate information in tax disputes, making it a pivotal reference for similar future cases. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD MUJIBULLAH SIDDIQUI, CHAIRMAN,
MUHAMMAD MAHBOOB ALAM, ACCOUNTANT MEMBER
|
| Lawyers |
Salman Pasha,
Mrs. Shaista Abbas
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1999 SLD 585,
1999 PTD 3901,
(1999) 79 TAX 62
|
| Other Citations |
Central Insurance Company v. C.B.R. 1993 PTD 766,
1993 SCMR 1232
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
65,
62,
50(4),
80C,
8pD
|