| Case ID |
431bbb29-b17a-4e3c-99c8-134c49f3729e |
| Body |
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| Case Number |
I.T.R. No. 256347 of 2018 |
| Decision Date |
Apr 17, 2019 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the reference application filed by the applicant department against the decision of the Appellate Tribunal. The court found that the findings of fact by the Appellate Tribunal were supported by the audited accounts of the taxpayer and that the department failed to provide sufficient evidence to classify the information acquired as 'definite information' under Section 122(5) of the Income Tax Ordinance, 2001. The court emphasized that it could not overturn factual findings made by the Appellate Tribunal, which is the final authority on fact. The decision underlined the importance of adhering to the legal definitions and requirements specified in tax laws and circulars, particularly regarding the treatment of local sales and the benefit of various circulars issued by the Federal Board of Revenue. |
| Summary |
In the case I.T.R. No. 256347 of 2018, decided by the Lahore High Court, the court addressed significant issues regarding the application of the Income Tax Ordinance, 2001, particularly in relation to the definitions of 'definite information' under Section 122(5). The case arose when the Commissioner Inland Revenue challenged the findings of the Appellate Tribunal, which had ruled in favor of the taxpayer, M/S Interloop Limited, Faisalabad. The core of the dispute was whether the information obtained from the Securities and Exchange Commission of Pakistan (SECP) regarding the taxpayer's audited accounts constituted 'definite information' sufficient to warrant reassessment under the tax law. The High Court held that the taxpayer's audited accounts, which showed local sales less than the benchmark specified in relevant circulars, did not meet the criteria for 'definite information'. This case is pivotal for taxpayers and tax authorities alike, as it clarifies the legal standards for information used in tax assessments and reinforces the authority of the Appellate Tribunal as the final arbiter of factual disputes in tax matters. |
| Court |
Lahore High Court
|
| Entities Involved |
COMMISSIONER INLAND REVENUE, FAISALABAD,
M/S INTERLOOP LIMITED, FAISALABAD
|
| Judges |
MUHAMMAD SAJID MEHMOOD SETHI,
JUSTICE MUZAMDAKHTAR SHABIR
|
| Lawyers |
Muhammad Asif Hashmi for Applicant Department,
Hashim Aslam Butt for Respondent-taxpayer
|
| Petitioners |
COMMISSIONER INLAND REVENUE, FAISALABAD
|
| Respondents |
M/S INTERLOOP LIMITED, FAISALABAD
|
| Citations |
2020 SLD 814,
2020 PTD 772,
(2020) 122 TAX 328
|
| Other Citations |
2014 SCMR 907
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
115,
122,
122(5),
122(8),
133,
133(5)
|