| Case ID |
366d275d-19b7-485f-876b-0beb39f82ecb |
| Body |
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| Case Number |
ITA No.495/LB/2011 |
| Decision Date |
Jun 06, 2013 |
| Hearing Date |
Jun 06, 2013 |
| Decision |
The appeal was filed by the CIR, Zone-XII, RTO-II, Lahore against the order of the Commissioner Inland Revenue, Appeals-III, Lahore. The court found that the previous order by the learned CIR(A) lacked solid reasoning, particularly in relation to the curtailment of additions made by the Taxation Officer due to unverifiable expenses. The court emphasized the requirement for clear justification for any relief granted to the taxpayer when expenses are unverifiable. Ultimately, the court vacated the impugned order and restored the decision of the Taxation Officer, citing inadequate reasoning from the CIR(A) as the basis for this decision. |
| Summary |
This case revolves around the appeal filed by the Commissioner Inland Revenue against the decision of the CIR(A) regarding the tax assessment of Mr. Imtiaz Rafi Butt for the tax year 2008. The Taxation Officer had assessed a loss of Rs. 1,664,347 after disallowing various expenses deemed unverifiable. The CIR(A) had granted relief by curtailing some additions without providing adequate justification, which was contested by the CIR. The Appellate Tribunal highlighted the importance of adhering to the Income Tax Ordinance, 2001, and the necessity for clear reasoning when amending assessments. The final decision reinstated the Taxation Officer's assessment, emphasizing the legal framework surrounding tax deductions and the obligation of taxpayers to substantiate their claims with verifiable evidence. This case is significant in tax law, particularly regarding the treatment of unverifiable expenses and the standards for justifying appeals in tax assessments. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
MRS. FIZA MUZAFFAR, ACCOUNTANT MEMBER,
MR. NAZIR AHMAD, JUDICIAL MEMBER
|
| Lawyers |
Ms. Fauzia Fakhar,
Mrs. Raeesa Sarwat
|
| Petitioners |
Mr. Imtiaz Rafi Butt
|
| Respondents |
The CIR, (RTO-II), Lahore
|
| Citations |
2013 SLD 170
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
120,
120(1),
122(5),
122(1),
177,
174(2)
|