| Case ID |
396b16cf-0b38-46f0-973b-daf3a26131b0 |
| Body |
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| Case Number |
ITA s. Nos. 3789 and 3790 of 1994 |
| Decision Date |
Apr 26, 1995 |
| Hearing Date |
Mar 26, 1995 |
| Decision |
The tribunal concluded that the addition of Rs. 6,61,964 as unexplained income was unjustified due to lack of statutory notice under section 13 of the Income Tax Ordinance, 1979. The assessee's arguments regarding the advance sales of imported goods were accepted, and it was determined that the assessing officer's actions were arbitrary and not supported by adequate evidence. Consequently, the appeals filed by the assessee were allowed, and the penalty imposed was also deleted. |
| Summary |
In the case of ITA s. Nos. 3789 and 3790 of 1994, the Appellate Tribunal Inland Revenue addressed significant issues surrounding the Income Tax Ordinance, 1979, particularly section 13(1)(aa) concerning unexplained income. The tribunal determined that the assessments made by the tax authorities lacked proper statutory backing, as no legal notice was provided to the assessee regarding the alleged unexplained investments. The tribunal emphasized the importance of due process and fair hearing in tax assessments, leading to the conclusion that the additions made by the assessing officer were arbitrary. The decision underscored the necessity for tax authorities to conduct thorough investigations and uphold legal standards when determining tax liabilities. This case reinforces taxpayer rights and due process in tax assessment, making it a pivotal reference in tax law. Keywords such as 'Income Tax Ordinance', 'unexplained income', 'tax assessment', and 'due process' are crucial for understanding the implications of this ruling. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD ZAMAN KHAN, JUDICIAL MEMBER,
ASHFAQ AHMED ACCOUNTANT MEMBER
|
| Lawyers |
Fayyaz Ahmed Choudhry,
Amar Umar Khan,
Muhammad Asif Hashmi, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1996 SLD 72,
1996 PTD 799
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
13(1)(aa)
|