| Case ID |
2b54bbf6-05fa-4ee4-8de0-31027969eb51 |
| Body |
View case body. Login to View |
| Case Number |
Complaint No. 310 of 2004 |
| Decision Date |
Aug 07, 2004 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman found that the actions of the DCIT in ignoring the declared loss and making arbitrary additions were contrary to law. The Ombudsman established that the additional assessments made under sections 25(c) and 12(18) of the Income Tax Ordinance were not justified as the claims by the complainant were valid and supported by documentation. The Ombudsman recommended revising the assessment orders for the years 1998-1999 and 2001-2002, and mandated compliance within 45 days. |
| Summary |
In the case involving Messrs Fatherland International (Pvt.) Limited, the Federal Tax Ombudsman addressed complaints regarding the arbitrary additions made by the DCIT under the Income Tax Ordinance, 1979. The assessment years in question included 1998-1999 and 2001-2002, where the complainant declared significant losses. The Ombudsman determined that the assessment officer failed to provide adequate justification for ignoring these losses and making arbitrary additions. The Federal Tax Ombudsman emphasized the importance of adhering to legal standards and proper documentation in tax assessments, ensuring that taxpayers' rights are protected. This case highlights the need for transparency and accountability in tax administration, as well as the role of the Federal Tax Ombudsman in addressing maladministration. The decision reinforces the significance of proper legal procedures and the necessity for tax authorities to provide clear reasoning for their actions to avoid arbitrary decisions that could adversely affect taxpayers. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Messrs Fatherland International (Pvt.) Limited
|
| Judges |
JUSTICE (RETD.) SALEEM AKHTAR
|
| Lawyers |
Dr. Muhammad Asghar
|
| Petitioners |
Dr. MAHMUD ASGHAR
|
| Respondents |
SECRETARY, REVENUE DIVISION, ISLAMABAD,
Shamim Ahmad,
Mrs. Nafeesa Satti
|
| Citations |
2008 SLD 86,
2008 PTD 481,
(2005) 91 TAX 363
|
| Other Citations |
Glaxo Laboratories Limited v. IAC of Income Tax and others PLD 1992 SC 549 = 1992 PTD 932
|
| Laws Involved |
Income Tax Ordinance, 1979,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
12,
12(18),
25(c),
63,
156,
129,
2(3),
9
|