| Case ID |
3b0978a0-ccdb-43a9-bfe6-3fa06c60db10 |
| Body |
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| Case Number |
I.T.As. Nos. 4009/LB and 4010/LB of 2003 |
| Decision Date |
Aug 19, 2006 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal allowed the appeals filed by the assessee, directing the Taxation Officer to proportionally adjust the sales considering the Gross Profit rate applied in accordance with the Dandakar formula and the previous history of the case. The Tribunal found that the Taxation Officer had rejected the declared version without providing specific reasons and emphasized the need for evidence to support the rejection of accounts. The Tribunal vacated the directions of the First Appellate Authority regarding remanding the matter and directed the Taxation Officer to consider the claims of depreciation under section 23(1)(v) of the Income Tax Ordinance, 1979, which had not been allowed by the Taxation Officer despite being specifically contended by the assessee. |
| Summary |
In this significant case from the Income Tax Appellate Tribunal, the focus was on the assessment of accounts under the Income Tax Ordinance of 1979. The Tribunal scrutinized the Taxation Officer's rejection of the declared version, which was based on general observations rather than specific evidence. The Tribunal highlighted the importance of verifiable purchases and the necessity of applying the Dandakar formula when accounts are rejected. Furthermore, the Tribunal addressed the issue of depreciation claims that were unjustly disallowed by the Taxation Officer. This case underscores the critical need for tax authorities to substantiate their claims with concrete evidence and adhere to legal standards when assessing taxpayers' accounts. It emphasizes the principles of fairness and accountability in tax assessments, which is essential for maintaining trust in the tax system. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
JAWAID MASOOD TAHIR BHATTI,
CH. NAZIR AHMAD
|
| Lawyers |
Amir Abbas,
Amir Naseem
|
| Petitioners |
Amir Abbas
|
| Respondents |
Mrs. Sabiha Mujahid
|
| Citations |
2007 SLD 38,
2007 PTD 835,
(2007) 95 TAX 325
|
| Other Citations |
1994 PTD (Trib.) 47,
1992 PTD (Trib.) 739,
1994 PTD (Trib.) 1228,
2001 MLD 1257,
1986 CLC 1042,
2005 PTD (Trib.) 1364,
Mrs. Naureen Hajra Bibi v. DCIT (I.T.A No.3392/LB of 1998)
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
62,
23,
23(1)(v)
|