| Case ID |
37559ce1-bba9-4099-ab8d-ac5c28c7f4db |
| Body |
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| Case Number |
I.T.A. No.1195/LB of 2007 |
| Decision Date |
Jun 02, 2008 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal dismissed the departmental appeal, determining that the imposition of a penalty was invalid due to the inordinate delay of 11 months after the assessment. The Tribunal upheld the First Appellate Authority's decision to delete the penalty, emphasizing that the burden of proof lies with the Department to establish any concealment of income. The Taxation Officer's failure to prove willful default or gross neglect meant that the taxpayer's inadvertent errors could not justify the imposition of a penalty, as penalties must be supported by clear evidence of wrongdoing. |
| Summary |
In the case of I.T.A. No.1195/LB of 2007, the Appellate Tribunal Inland Revenue addressed the imposition of a penalty under the Income Tax Ordinance, 2001 for alleged concealment of income by a Private Limited Company. The Tribunal highlighted that the penalty was imposed after an inordinate delay of 11 months, which rendered it invalid. The decision emphasized that the burden of proof lies with the Department to demonstrate any concealment of income, and that penalties should only be imposed when there is clear evidence of deliberate wrongdoing. The Tribunal reaffirmed the principles guiding penalty proceedings, citing previous judgments that require a strong basis for any penalty action. This case serves as a critical reminder of the legal standards and procedural requirements surrounding tax penalties, reinforcing the need for timely and substantiated actions by tax authorities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Private Limited Company
|
| Judges |
JAWAID MASOOD TAHIR BHATTI
|
| Lawyers |
Sabiha Mujahid
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2008 SLD 35,
2008 PTD 1662,
(2008) 98 TAX 56
|
| Other Citations |
1994 PTD 688,
1994 PTD 675,
1995 PTD 359,
2007 PTD (Trib.) 932,
1993 PTD 245 (Trib.),
(1972) ITR 368 (S.C. of India)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
122,
184
|