| Case ID |
30897e5a-27f9-4813-a820-60e5f48f3b43 |
| Body |
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| Case Number |
I.T.A. No. 1117/KB of 1982-83 |
| Decision Date |
Feb 09, 1988 |
| Hearing Date |
Jan 26, 1988 |
| Decision |
The Income Tax Appellate Tribunal ruled that the assessing officer was not justified in rejecting the trading results on incomplete projects. The tribunal emphasized that the books of accounts maintained by the assessee were consistent with prior years and that profits from work-in-progress should not be assessed until a minimum of 25% of the project was completed. The tribunal noted that the assessing officer did not raise any doubts regarding the accounts provided and concluded that the method of accounting employed by the appellant should be accepted. Thus, the appeal was dismissed, reaffirming the principles of accounting consistency and the proper treatment of incomplete project profits. |
| Summary |
In the case I.T.A. No. 1117/KB of 1982-83, the Income Tax Appellate Tribunal addressed critical issues surrounding the treatment of incomplete projects under the Income Tax Ordinance of 1979. The tribunal, led by Chairman Farhat Ali Khan and Member Manzoorul Haque, evaluated the appeal against the decisions made by the assessing officer. The central issue revolved around whether profits from work-in-progress should be taxed when the completion percentage was below 25%. The tribunal upheld the position that the accounting practices followed by the assessee, which had been consistent over the years, were valid and should not be disregarded without just cause. This decision underscores the importance of adhering to established accounting methods and the principle of not taxing unrecognized income. The ruling provides clarity on the treatment of contractor profits and reinforces the need for assessing officers to substantiate their evaluations with appropriate evidence, thus ensuring due process in tax assessments. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan, Chairman,
Manzoorul Haque, Member
|
| Lawyers |
Mohammad Farid, D.R. for Appellant,
Ebrahim Sidat, C.A. for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1988 SLD 39,
1988 PTD 310,
(1988) 58 TAX 1
|
| Other Citations |
1988 P T D (Trib.) 155,
Sukhdeodas Jalan v. C.I.T. 26 I T R 617,
ITA Nos. 1315/KB to 1317/KB,
ITA Nos. 100, 1318, 404, 101 of 1980-81
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
62,
32
|