| Case ID |
38190fdb-cce5-4b08-9a31-df2fcc934dd2 |
| Body |
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| Case Number |
ITR No. 21716 of 2022 |
| Decision Date |
May 12, 2022 |
| Hearing Date |
May 12, 2022 |
| Decision |
The Lahore High Court dismissed the reference application filed by the taxpayer against the order of the Appellate Tribunal Inland Revenue, Lahore. The court found that the audit proceedings against the taxpayer were not concluded within the prescribed timelines and that the taxpayer failed to provide necessary documentation to facilitate the audit. It was held that the objection regarding the claim of exempt income was properly confronted, and the addition made in the assessment was justified. The court ruled that no concession for exempt income could be granted as the requisite conditions were not fulfilled. The decision emphasized that the Appellate Tribunal did not commit any illegality in its findings regarding the audit and the taxpayer's claims. Therefore, the reference application was decided against the applicant. |
| Summary |
In the case of ITR No. 21716 of 2022, the Lahore High Court dealt with the taxpayer's appeal against the dismissal of their case by the Appellate Tribunal Inland Revenue. The court analyzed the compliance of the tax audit process and the taxpayer's claims regarding exempt income. Key legal provisions from the Income Tax Ordinance, 2001 were scrutinized, particularly sections related to audit timelines and the requirements for claiming exempt income. The court highlighted the importance of timely cooperation during audits and the consequences of failing to meet statutory obligations. The ruling underscored the necessity for taxpayers to substantiate their claims with adequate documentation to avoid adverse tax implications. This case serves as a significant reference for future tax disputes involving audit procedures and the conditions required for claiming tax exemptions. |
| Court |
Lahore High Court
|
| Entities Involved |
Appellate Tribunal Inland Revenue,
Federal Board of Revenue
|
| Judges |
MUHAMMAD SAJID MEHMOOD SETHI,
ASIM HAFEEZ
|
| Lawyers |
Mr. Muhammad Mansha Sukhera,
Mr. Muhammad Bilal Munir
|
| Petitioners |
M/S PUNJAB LOK SUJAG
|
| Respondents |
APPELLATE TRIBUNAL INLAND REVENUE, LAHORE BENCH, LAHORE
|
| Citations |
2024 SLD 4797,
(2024) 130 TAX 352
|
| Other Citations |
Nestle Pakistan Limited etc. Vs. Federal Board of Revenue through its Chairman etc (Intra-Court Appeal No.338 of 2017),
Commissioner Inland Revenue, Sialkot and others Vs. M/s Allah Din Steel and Rolling Mills and others (2018 PTD 1444(SC)),
Messrs Fateh Yarn Pvt. Ltd Faisalabad Vs. Commissioner Inland Revenue Faisalabad and others (2021 SCMR 1133)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
2(36),
121,
122,
122(1),
122(4),
122(5),
122(9),
137,
137(2),
174,
176(6),
177,
214C,
221
|