| Case ID |
2b9df1ac-15fb-4c7d-ad7e-a02227f12e3b |
| Body |
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| Case Number |
Income Tax Appeal No. 225 of 1997 |
| Decision Date |
May 21, 2009 |
| Hearing Date |
May 21, 2009 |
| Decision |
The Sindh High Court ruled in favor of the appellant, stating that the Assessing Officer had no authority to estimate the sale price of a verifiable transaction unless it was proven to be sham. The Court emphasized that mere conjecture or guesswork cannot justify disregarding a documented and verifiable sale between two identifiable parties. The Income Tax Appellate Tribunal's decision to estimate the sale price based on unsubstantiated claims was found to be unwarranted. The Court's ruling reinforced the principle that verifiable transactions should be respected unless compelling evidence suggests otherwise. |
| Summary |
This case revolves around an income tax appeal concerning the sale of a plot by Messrs Oceanic Construction Co. The Sindh High Court reviewed the Income Tax Appellate Tribunal's decision regarding the assessment year 1987-88, where the Assessing Officer disputed the declared sale price based on market estimates rather than evidence. The Court found that the transaction was verifiable and that the Assessing Officer failed to provide evidence to prove collusion or that the sale price was sham. The ruling highlighted the importance of respecting verifiable transactions and the need for solid evidence before dismissing them. This case is significant for understanding the application of the Income Tax Ordinance, particularly sections 12 and 13, and sets a precedent for future cases involving verifiable transactions in income tax assessments. |
| Court |
Sindh High Court
|
| Entities Involved |
Messrs Sassi (Pvt.) Limited
|
| Judges |
MUHAMMAD ATHAR SAEED,
ARSHAD SIRAJ MEMON
|
| Lawyers |
Muhammad Farid,
Jawaid Farooqui
|
| Petitioners |
Messrs OCEANIC CONSTRUCTION CO.
|
| Respondents |
others,
COMMISSIONER OF INCOME TAX, ZONE C, KARACHI
|
| Citations |
2009 SLD 1506,
(2010) 101 TAX 12,
2010 PTCL 958,
2009 PTD 1656
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
12(12),
13(2)
|