| Case ID |
3a9ce87e-c757-4e82-b2b0-6086fb1a5ca2 |
| Body |
View case body. Login to View |
| Case Number |
T.R.A. No. 14 of 2005 |
| Decision Date |
Aug 18, 2006 |
| Hearing Date |
|
| Decision |
The Peshawar High Court ruled that the Income Tax Appellate Tribunal's order was flawed due to its retrospective application of section 122(5) of the Income Tax Ordinance, 2001. The court emphasized that once the facts of the case were fully disclosed to the authorities and a decision was made, it could not be amended solely based on an audit report that categorized trial production as commercial production. The court reinstated the original order of the Commissioner of Income Tax (Appeals), affirming the tax holiday period for the petitioner and rejecting the retrospective amendment of the assessment that had been previously finalized. |
| Summary |
The case involves Messrs Sarina Industries (PVT.) LTD, which challenged a decision by the Income Tax Appellate Tribunal regarding the classification of its production during the tax holiday period. The court examined the legality of amending an assessment after the facts had been disclosed and considered the implications of the audit report. The ruling emphasized the importance of finality in tax assessments and the distinction between trial and commercial production under the Income Tax Ordinance. This case highlights critical aspects of tax law and the necessity for tax authorities to adhere to established principles of justice in revenue collection efforts. |
| Court |
Peshawar High Court
|
| Entities Involved |
Not available
|
| Judges |
IJAZ-UL-HASSAN KHAN,
MUHAMMAD RAZA KHAN
|
| Lawyers |
Hafiz Muhammad Idrees,
Eid Muhammad Khattak
|
| Petitioners |
Messrs SARINA INDUSTRIES (PVT.) LTD
|
| Respondents |
COMMISSIONER OF INCOME TAX, COMPANY ZONE, PESHAWAR
|
| Citations |
2006 SLD 212,
2006 PTD 2474,
(2007) 95 TAX 67
|
| Other Citations |
Inspecting Assistant Commissioner and another v. Pakistan Herald Ltd. 1997 PTD 1485,
Edulji Dinshaw Limited v. Income Tax Officer 1990 PTD 155 SC,
Arafat Woollen Mills v. ITO (1990-61 Tax 46 SC Pakistan)
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973,
Income Tax Ordinance, 1979
|
| Sections |
66,
66A,
122(5),
133,
189,
65,
118(c),
Second Schedule
|