| Case ID |
3841e2e7-1087-4afa-a6e7-a1f9da113407 |
| Body |
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| Case Number |
D-2741 of 1985 |
| Decision Date |
|
| Hearing Date |
Nov 03, 1985 |
| Decision |
The appeal was dismissed, confirming the addition of Rs. 5,88,120 to the income of the assessee for the assessment year 1982-83. The Tribunal found that the order passed by the Income Tax Officer (ITO) was erroneous and prejudicial to the interest of revenue, as it accepted the assessee's claim of an unexplained amount without sufficient evidence. The Inspecting Assistant Commissioner (IAC) rightly issued a show cause notice under Section 66A and conducted necessary inquiries. The Tribunal emphasized that the non-resident status of the assessee did not exempt him from tax liability on income accrued in Pakistan, particularly when the source of that income was not satisfactorily explained. The decision underscored the importance of transparency and accountability in tax assessments, especially in cases involving foreign remittances and investments that lack proper documentation. |
| Summary |
This case revolves around the Income Tax Appellate Tribunal's decision regarding the assessment of a non-resident taxpayer and the scrutiny of unexplained investments. The Tribunal examined the validity of the ITO's acceptance of a loss declared by the assessee, which was later challenged by the IAC under Section 66A of the Income Tax Ordinance, 1979. The case highlights critical issues in tax law, including the obligations of taxpayers to substantiate claims with credible evidence, the rights of tax authorities to reassess and revise previous orders, and the legal implications of non-resident status in tax liability. The Tribunal reaffirmed that all income earned within Pakistan, regardless of the taxpayer's residency, is subject to taxation, emphasizing the need for compliance with tax regulations. The decision serves as a precedent for future cases involving foreign income and the tax responsibilities of non-residents, making it significant for legal practitioners and taxpayers alike. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Zaffar Hussain,
Mian Abdul Khaliq
|
| Lawyers |
Javed Tahir Butt
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1986 SLD 77,
1986 PTD 490
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
66,
66A,
62,
13(1)(aa),
11(1)(b),
119
|