| Case ID |
3b357079-d49d-4e35-814d-a8b085739eac |
| Body |
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| Case Number |
ITA NO. 1417/LB/2013 |
| Decision Date |
Feb 02, 2016 |
| Hearing Date |
Feb 01, 2016 |
| Decision |
The appeal filed by the taxpayer has been accepted. The Appellate Tribunal found that the assessments finalized under section 121(1)(d) of the Income Tax Ordinance, 2001 by the taxation officer, which were confirmed by the learned first appellate authority, were not sustainable under the law. The tribunal emphasized that the provisions of section 121 could not apply to cases where returns of income had been filed. Therefore, the deemed assessment order under section 120 was restored, and the orders issued by both the authorities below were annulled. |
| Summary |
This case revolves around a taxpayer's appeal against an assessment order issued by the Commissioner Inland Revenue (CIR) for the tax year 2009. The taxpayer, Mr. Tariq Mehmood, had filed a return declaring an income of Rs. 2,538,972, which was later subjected to an audit under section 177 of the Income Tax Ordinance, 2001. The assessing officer found discrepancies and issued a notice under section 121, leading to an assessment that included significant additions to the declared income. The taxpayer contested the legality of the audit selection and the resultant order, arguing that the case should not have been subjected to such scrutiny due to the already filed return. The Appellate Tribunal, after reviewing the arguments and relevant legal precedents, determined that the provisions under which the assessment was made were improperly applied since the taxpayer had complied with the return filing requirements. The tribunal ruled in favor of the taxpayer, reinstating the deemed assessment order as per section 120 of the Ordinance. This case underscores the importance of adherence to proper legal procedures in tax assessments and the protection of taxpayers' rights against unjustified audit actions. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
RTO Lahore,
M/s Siddique Sons
|
| Judges |
MUHAMMAD WASEEM CH.,
MUHAMMAD RAZA BAQIR
|
| Lawyers |
Mr. Amir Umar Khan,
Mrs. Shazia Gul
|
| Petitioners |
Mr. Tariq Mehmood
|
| Respondents |
The CIR, RTO, Lahore
|
| Citations |
2016 SLD 202
|
| Other Citations |
2013 PTD 837,
2015 PTD 681,
2010 101 Tax 153
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
120(1),
177,
176,
153(1)(c),
121,
174(2)
|