| Case ID |
42f99e77-751e-4c7a-a743-05da14c0bda5 |
| Body |
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| Case Number |
I.T.A. No. 821/IB/2015 |
| Decision Date |
Jan 20, 2016 |
| Hearing Date |
Jan 18, 2016 |
| Decision |
The decision of the Appellate Tribunal Inland Revenue vacated the order passed by the Inland Revenue Officer, stating that the turnover taken for computation of minimum tax under section 113 was not representative of the whole year's turnover. The Tribunal emphasized that the scope of section 221 is limited to rectifying mistakes apparent from the record and does not apply to recalculating income based on long arguments or interpretations of law. The case was remanded back to the Taxation Officer for a fresh decision in light of S.R.O. 174(I)/2012, which allows for a reduction in minimum tax and must be applied prospectively. |
| Summary |
This case revolves around a dispute regarding the computation of minimum tax for a taxpayer under the Income Tax Ordinance, 2001. The Appellate Tribunal Inland Revenue addressed the appeal against the order of the learned Commissioner Inland Revenue (Appeals-I), which had vacated the order of the Inland Revenue Officer. The key issue was whether the turnover considered for minimum tax calculation represented the entire year. The Tribunal found that the Commissioner made an error in interpreting the turnover and highlighted that the law's provisions, particularly under sections 113 and 221, needed precise application. The ruling underscored the importance of correctly interpreting tax laws and emphasized that reductions in tax, as stipulated in S.R.O. 174(I)/2012, should be applied prospectively. This case reflects the ongoing complexities within tax regulations and the necessity for accurate legal interpretations in tax assessments. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Inland Revenue Officer,
Commissioner Inland Revenue (Appeals-I)
|
| Judges |
SHAHID MASOOD MANZAR,
MUHAMMAD RIAZ
|
| Lawyers |
MR.MUHAMMAD JAWAD, D.R.,
MR.SHAKIL AHMED, ITP
|
| Petitioners |
THE CIR, L.T.U, ISLAMABAD
|
| Respondents |
ALFAISAL FLOUR & GENERAL MILLS, ISLAMABAD
|
| Citations |
2017 SLD 837
|
| Other Citations |
97 TAX 201
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
113,
156,
221,
221(2),
Clause(14)Part-III of Second Schedule
|