| Case ID |
4314d31d-dd92-43c5-928b-32d4a0b1df31 |
| Body |
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| Case Number |
I.T.A. No.2199/LB bf 1995 |
| Decision Date |
Feb 18, 1996 |
| Hearing Date |
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| Decision |
The appeal concerned the assessment year 1993-94 regarding additions made under section 13(1)(b) of the Income Tax Ordinance, 1979. The appellant, a private limited company, had declared an income of Rs.1,77,477, but the assessing officer applied a GP rate of 18% and made significant additions citing concealment of investment in immovable property. The appellate tribunal found that the investments were already explained and declared in the balance sheet, reducing the addition under section 13(1)(b) but maintaining the add-backs in the profit and loss account as they were not verifiable. The case highlighted issues of property valuation and the necessity of proper documentation in financial assessments. |
| Summary |
This case revolves around the income tax assessment of M/s. Koldcraft (Pvt.) Limited for the year 1993-94, focusing on the concealment of investments in two plots of land. The assessing officer alleged that the company failed to disclose the actual investments made, leading to significant additions under section 13(1)(b) of the Income Tax Ordinance, 1979. The tribunal examined the evidence presented, including the history of the properties and the company's declarations in its balance sheet. It was determined that the investments were accounted for, resulting in a reduction of the contested addition but upholding other financial adjustments. The case emphasizes the importance of transparency in financial reporting and the implications of property valuation in tax assessments, making it crucial for companies to maintain accurate records and documentation to avoid disputes with tax authorities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
M/s. Koldcraft (Pvt.) Limited,
M/s. Amesco (Pvt.) Limited
|
| Judges |
SHARIQ MAHMOOD, ACCOUNTANT MEMBER
|
| Lawyers |
Yousaf Saeed, C. A. for Appellant,
Muhammad Mubeen Malik, D.R. for Respondent
|
| Petitioners |
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| Respondents |
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| Citations |
1997 SLD 137 = 1997 PTD 1115
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| Other Citations |
Not available
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| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
13(1)(b)
|