| Case ID |
426396c2-22e8-4087-8027-6dcf6a82d3a3 |
| Body |
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| Case Number |
Tax Reference No. 31 of 1973 |
| Decision Date |
Jul 06, 1980 |
| Hearing Date |
|
| Decision |
The Lahore High Court held that the Income-tax Officer is required to serve a notice to the assessee when there is a doubt regarding the correctness of a submitted return. The court emphasized that the provisions of Section 23(2) of the Income Tax Act, 1922, are mandatory. The Income-tax Officer must provide an opportunity for the assessee to justify their return by presenting evidence or appearing in person. The court ruled that an assessment made without such notice is not sustainable in law. The decision also highlighted that the Income-tax Officer could not make an ex parte assessment without proper notification to the assessee, thus reinforcing the statutory right of the assessee to be heard before any adverse action is taken. |
| Summary |
In the case of Tax Reference No. 31 of 1973, the Lahore High Court addressed critical issues regarding the procedural requirements of the Income Tax Act, 1922, specifically focusing on the mandatory nature of notice under Section 23(2). The case arose when the Income-tax Officer doubted the correctness of a return submitted by the contractor firm, Sakhi Contractors & Engineers. The court found that the Income-tax Officer failed to serve the necessary notices, resulting in an illegal ex parte assessment. The ruling underscored the importance of compliance with statutory procedures to ensure fairness and the right to a hearing. This case serves as a significant precedent for tax law, emphasizing that procedural safeguards must be observed to uphold the rights of taxpayers. It highlights the balance between tax authority powers and taxpayer rights, making it essential for legal practitioners in tax law to ensure that all procedural requirements are met to avoid similar legal disputes in the future. |
| Court |
Lahore High Court
|
| Entities Involved |
Sakhi Contractors & Engineers, Multan
|
| Judges |
MUHAMMAD AFZAL LONE,
KARRAR HUSSAIN ZAIDI
|
| Lawyers |
Sh. Abdul Haq
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
SAKHI CONTRACTORS & ENGINEERS, MULTAN
|
| Citations |
1981 SLD 86,
1981 PTD 210,
(1982) 45 TAX 44
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
23,
23(2)
|