| Case ID |
42e5116c-5651-48bd-a810-e711ede4b3b5 |
| Body |
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| Case Number |
I.T.A. No.724/KB of 2010 |
| Decision Date |
Jan 11, 2011 |
| Hearing Date |
|
| Decision |
The appeal filed by the taxpayer was allowed while the cross appeal filed by the department was dismissed. The court found that the Commissioner Inland Revenue (Appeals) was not justified in remanding the case back to the Assessing Officer for re-adjudication as the power to do so had been omitted from section 129 of the Income Tax Ordinance, 2001. The Taxation Officer's assessment was deemed correct, and the previous and subsequent years' treatments of the financial income were upheld. The impugned order to remand the matter was vacated, and the Taxation Officer's order under section 122(5-A) was recalled. This decision reinforced the principle that once an issue has been settled in prior years, it should not be deviated from without substantial justification. |
| Summary |
This case revolves around the Income Tax Ordinance (XLIX of 2001) and the powers of the Commissioner Inland Revenue (Appeals). The taxpayer, United Sales (Private) Ltd., contested the remanding of their case back to the Assessing Officer by the Commissioner, arguing that such power had been removed from the ordinance. The Taxation Officer had initially assessed income from hire purchase incorrectly. The Tribunal emphasized the importance of consistency in tax assessments across years, stating that deviations from settled issues were not permissible unless justified. This case highlights key aspects of tax law and the importance of adhering to established precedents, ensuring stability and predictability in tax administration. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
United Sales (Private) Ltd.,
Commissioner of Inland Revenue
|
| Judges |
JAWAID MASOOD TAHIR BHATTI, JUDICIAL MEMBER,
MALIK ABDUL SAMAD, ACCOUNTANT MEMBER
|
| Lawyers |
|
| Petitioners |
Messrs UNITED SALES (PRIVATE) LTD.
|
| Respondents |
COMMISSIONER OF INLAND REVENUE, LEGAL DIVISION, KARACHI
|
| Citations |
2011 SLD 1427,
2011 PTD 1250
|
| Other Citations |
2004 PTD 3020,
2006 PTD (Trib.) 356,
(2010) 102 Tax 554 (Trib.)
|
| Laws Involved |
Income Tax Ordinance (XLIX of 2001)
|
| Sections |
122(5-A),
129,
131
|