| Case ID |
3ab45ad9-e293-427c-8d51-5f6695ca5551 |
| Body |
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| Case Number |
Income Tax Cases Nos. 3, 4 and 20 of 1995 |
| Decision Date |
May 26, 2006 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled on the appeals filed by M/S. Ghazi Tanneries Ltd. against the decisions made by the Income Tax Officer regarding the rejection of their trading accounts for the assessment years 1987-88, 1988-89, and 1989-90. The court found that the Income Tax Officer had not provided specific instances of unverifiability to justify the rejection of the accounts. It emphasized the importance of maintaining proper records and the necessity for the tax authority to substantiate any claims of discrepancies with tangible evidence. The court ultimately ruled in favor of the applicant, indicating that the reasons for rejecting the accounts were not valid and that the assessments should reflect the actual trading results as declared by the applicant. |
| Summary |
This case pertains to income tax disputes involving M/S. Ghazi Tanneries Ltd. and the Commissioner of Income Tax. The main issue revolved around the rejection of the company's trading accounts for three consecutive assessment years due to alleged discrepancies and unverifiability in their financial records. The court examined the applicability of the Income Tax Ordinance, particularly focusing on the burden of proof and the standards required for rejecting submitted accounts. The ruling underscored the need for tax authorities to provide concrete evidence when challenging the validity of a taxpayer's records. The case highlights critical aspects of tax law, including the treatment of trading accounts and the responsibilities of both taxpayers and tax officials in maintaining accurate financial documentation. This decision is expected to set a precedent for similar disputes in the future, reinforcing the principles of fairness and transparency in tax assessments. |
| Court |
Sindh High Court
|
| Entities Involved |
Commissioner of Income Tax,
Ghazi Tanneries Ltd.
|
| Judges |
Justice Sarmad,
Justice Jalal Osmany,
Justice Muhammad Athar Saeed
|
| Lawyers |
Iqbal Salman Pasha
|
| Petitioners |
M/S. Ghazi Tanneries Ltd., Karachi
|
| Respondents |
Commissioner of Income Tax, Central Zone B, Karachi
|
| Citations |
2011 SLD 58,
(2011) 104 TAX 352,
2011 PTD 2161,
2012 PTCL 58
|
| Other Citations |
Commissioner of Income Tax, Companies-III, Karachi v. Krudd Sons Ltd. 1994 SCMR 229,
Pima (Pvt.) Ltd., Karachi v. Commissioner of Income Tax, Companies-I, Karachi 1994 PTD 123,
New Snow White Dry Cleaners, Karachi v. Commissioner of Income Tax (East) Karachi 1985 PTD 315,
Messrs Zafar Saleem Bros. Ltd., Karachi v. The Commissioner of Income Tax, Karachi 1984 PTD 225,
Star Rolling Mills v. Commissioner of Income Tax PLD 1974 Note 129,
Messrs Pakistan Oil Mills Ltd. Hyderabad v. The Commissioner of Income Tax (West), Karachi 1985 PTD 320,
Muhammadi Textile Mills Ltd. v. Commissioner of Income Tax (East), Karachi 1984 PTD 239,
Unreported judgment dated 12-8-2005 passed in I.T.A. No.493 of 1999
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
32,
136,
32(3)
|