| Case ID |
2aa9d640-8a95-4fa7-b132-ffb95f2d9677 |
| Body |
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| Case Number |
Complaints Nos. 1456 and 1457 of 2001 |
| Decision Date |
Nov 29, 2001 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman found that the valuation of the property known as Khalid Plaza for wealth tax assessments from 1991-92 to 1996-97 was not correctly assessed. The Ombudsman upheld the Income-tax Appellate Tribunal's decision that the value of the plot owned by a director, Mr. Khalid Malik, should not be excluded from the wealth tax assessment of the company. The Ombudsman rejected the complainant's plea to exclude the plot's value and advised the complainant to apply for any excess income tax payment to be adjusted against the wealth tax demand. The findings resulted in the dismissal of both complaints, confirming the legality of the assessments made by the Wealth Tax Officer. |
| Summary |
This case revolves around complaints filed by Khalid Construction Co. (PVT.) LTD. regarding the wealth tax assessments for the property known as Khalid Plaza. The company contested the valuation of the property, arguing that the land belonged to one of its directors, Mr. Khalid Malik, and should not be included in the company's wealth tax calculation. The Federal Tax Ombudsman reviewed the complaints and upheld the previous decisions of the Income-tax Appellate Tribunal, which stated that the value of the land could not be excluded from the property valuation. The Ombudsman advised the complainant to seek a refund for any excess income tax payments made. The decision emphasized the importance of accurate property valuation in wealth tax assessments and clarified that wealth tax could not be levied on two entities for the same property. This case highlights significant aspects of tax law, particularly regarding property ownership and tax liabilities. Key terms include wealth tax assessment, property valuation, tax law compliance, and the role of the Federal Tax Ombudsman in resolving tax disputes. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Khalid Construction Co. (PVT.) LTD.,
Secretary, Revenue Division
|
| Judges |
JUSTICE (RETD.) SALEEM AKHTAR
|
| Lawyers |
Khalid Malik,
Syed Pervez Kosar,
Nadir Mumtaz
|
| Petitioners |
Messrs KHALID CONSTRUCTION CO. (PVT.) LTD.
|
| Respondents |
SECRETARY, REVENUE DIVISION
|
| Citations |
2002 SLD 535,
2002 PTD 2468,
(2002) 86 TAX 99
|
| Other Citations |
1999 PTD 1060
|
| Laws Involved |
Federal Tax Ombudsman Ordinance, 2000,
Wealth Tax Rules, 1963
|
| Sections |
9,
R.8(3)
|