| Case ID |
32201b98-25ee-4730-8cc0-b11e328410d3 |
| Body |
View case body. Login to View |
| Case Number |
ITA No. 307/IB/15 |
| Decision Date |
Dec 22, 2015 |
| Hearing Date |
Dec 22, 2015 |
| Decision |
The appeal of Mr. Liaqat Ali Chaudhry has been accepted on legal grounds due to the failure of the assessing officer to apply a judicial mind. The show cause notice issued lacked definite information, which is a mandatory requirement under section 122(1) of the Income Tax Ordinance, 2001. The amendment made to the assessment order was also found to be time-barred as it was issued beyond the stipulated five-year limitation period. Thus, the orders passed by the lower authorities were vacated, and the appeal was granted due to these legal deficiencies. |
| Summary |
In the case of Mr. Liaqat Ali Chaudhry vs. CIR, RTO, Islamabad, the Appellate Tribunal Inland Revenue addressed significant issues regarding the validity of the income tax assessments made against the appellant. The taxpayer's appeal stemmed from a partially confirmed order by the Commissioner Inland Revenue (Appeals-II), which was based on an earlier order from the Officer Inland Revenue under section 122(1) of the Income Tax Ordinance, 2001. The crux of the appeal revolved around the lack of 'Definite Information' that is required to initiate proceedings under section 122 and the adherence to the five-year time limitation for amending assessments. The tribunal emphasized that the assessing officer had failed to provide tangible evidence supporting the necessity for amendments, resulting in a decision that favored the taxpayer. Additionally, the tribunal highlighted the importance of following judicial precedents and the correct interpretation of capital gains taxation, ensuring that taxpayers are not unjustly subjected to tax obligations without concrete evidence of taxable income. This case serves as a critical reference for future tax assessments, reinforcing the need for due diligence and compliance with legal standards in tax proceedings. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
Not available
|
| Lawyers |
Mr. Muhammad Imran Malik, FCMA,
Mr. Shaukat Hayat, DR
|
| Petitioners |
Mr. Liaqat Ali Chaudhry
|
| Respondents |
CIR, RTO, Islamabad
|
| Citations |
2016 SLD 108
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Income Tax Ordinance, 2001,
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973
|
| Sections |
18(1)(a),
37,
37(5)(c),
120,
122,
122(1),
122(2),
122(5),
122(8),
2(11),
27,
7(4)
|