| Case ID |
37ed54ae-7a3e-4dde-8d35-53cc1bd312ee |
| Body |
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| Case Number |
I. T. A. No. 2979/LB of 1995 |
| Decision Date |
Jun 11, 1996 |
| Hearing Date |
Nov 29, 1995 |
| Decision |
The Appellate Tribunal found that the proceedings under section 65 of the Income Tax Ordinance, 1979, initiated by the Assessing Officer were not tenable. It ruled that the change of opinion regarding the purchase price of a shop did not constitute definite information required to reopen the assessment. The Tribunal emphasized the importance of having concrete information rather than merely relying on comparisons with other properties. The order of the C.I.T.(A) was cancelled, and the original assessment was upheld as valid, affirming that the Assessing Officer had previously examined the information regarding the shop purchase adequately. |
| Summary |
In the case concerning the Income Tax Ordinance, 1979, the Appellate Tribunal dealt with the issue of additional assessments under section 65. The case involved an individual appellant who had declared an income from wholesale cloth sales and had purchased a shop in Panorama Centre, Lahore. The Assessing Officer reopened the assessment based on perceived understatement of the property's value, citing higher values from other transactions. However, the Tribunal found that the original assessment had been carried out with sufficient detail and consideration. The Tribunal ruled that the subsequent view of the Assessing Officer was merely a change of opinion without any new, definite information. This case highlights the legal principles governing the reopening of tax assessments and the evidentiary standards required for such actions. It underscores the necessity for tax authorities to base their assessments on solid evidence rather than speculative comparisons. The ruling serves as a precedent for future cases involving the reopening of assessments based on property valuations. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
Malik Muhammad Tauqir Afzal, Judicial Member,
Iftikhar Ahmad Bajwa, Accountant Member
|
| Lawyers |
Muhammad Sarfraz, F.C.A.,
Mrs. Sabiha Mujahid, D.R.
|
| Petitioners |
Muhammad Sarfraz, F.C.A.
|
| Respondents |
Mrs. Sabiha Mujahid, D.R.
|
| Citations |
1997 SLD 287 = 1997 PTD 2301
|
| Other Citations |
1993 PTD (Trib.) 1681
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
65,
59(A),
85,
13(1)(d)
|