| Case ID |
2b1a3a27-c2bd-4ce0-890e-c7202f8a2c9d |
| Body |
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| Case Number |
ITA No. 876/LB/2012 |
| Decision Date |
Jun 20, 2016 |
| Hearing Date |
Jun 20, 2016 |
| Decision |
The Appellate Tribunal Inland Revenue vacated the orders passed by both authorities below, accepting the appeal filed by the taxpayer. The Tribunal concluded that the provisions of section 121(l)(d) could not be invoked in cases where a return of total income had been filed. This decision aligns with the previous judgments that declared such actions by the tax department illegal, reinforcing the taxpayer's rights under the Income Tax Ordinance, 2001. |
| Summary |
In the case of M/s. Pakistan Vinyl Industries vs. The CIR(APPEAL courts-IV), the Appellate Tribunal Inland Revenue, Lahore, addressed the legality of assessment orders under section 121(l)(d) of the Income Tax Ordinance, 2001. The taxpayer contested the assessment order dated 29.09.2009, which determined their taxable income at Rs. 30,500,000, following an audit process that was initiated after the taxpayer filed a return declaring income of Rs. 2,398,417. The Tribunal found that the orders of the tax authorities were unjustified, as the provisions of section 121(l)(d) did not apply to cases where returns had already been filed. This ruling is significant in upholding taxpayers' rights and clarifying the application of income tax laws, particularly in audit proceedings. The decision is supported by previous judicial interpretations that have consistently favored taxpayer compliance and protection under the law. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Pakistan Vinyl Industries
|
| Judges |
NAZIR AHMAD (CHAIRMAN),
SHERAZ MIRZA (Accountant Member)
|
| Lawyers |
Mr. S.M. Anwar Pasaricha, Advocate,
Ms. Bushra Jaffar, DR
|
| Petitioners |
M/s. Pakistan Vinyl Industries, Lahore
|
| Respondents |
The CIR(APPEAL courts-IV), Lahore
|
| Citations |
2016 SLD 1293
|
| Other Citations |
2013 PTD 837,
(2010) 101 Tax 153 (Trib.)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
120,
177(4),
121(l)(d)
|