| Case ID |
464a7512-7b30-4e76-94c9-39230de9f0eb |
| Body |
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| Case Number |
Income Tax Appeal No. 508 of 1998 |
| Decision Date |
Dec 21, 2004 |
| Hearing Date |
Dec 21, 2004 |
| Decision |
The Lahore High Court upheld the imposition of a penalty by the Assessing Officer for concealment of income, affirming that the action taken was justified. However, it recognized the Tribunal's leniency in reducing the penalty amount, suggesting that while the initial penalty was appropriate based on the facts, the Tribunal's decision to lessen the penalty was also reasonable given the circumstances of the case. The court concluded that the Tribunal's interpretation of the appellant's actions as a bona fide mistake did not negate the legality of the penalty imposed by the Assessing Officer. |
| Summary |
This case revolves around an appeal by Messrs RENO PACKAGES (PVT.) LTD against a penalty imposed for concealing income as per the Income Tax Ordinance, 1979. The appellant, involved in manufacturing corrugated boxes, had initially received an exemption but later faced scrutiny for purchasing unaccounted machinery worth Rs.38,000. The Assessing Officer deemed this as concealment and imposed a hefty penalty. However, the Tribunal acknowledged the mistake as bona fide and reduced the penalty, resulting in this appeal at the Lahore High Court. The court upheld the penalty's imposition, emphasizing the importance of accurate disclosures in tax returns, while also recognizing the Tribunal's discretion in adjusting the penalty based on the case's specifics. The ruling highlights the balance between enforcing tax laws and acknowledging genuine errors, a critical aspect in tax litigation. |
| Court |
Lahore High Court
|
| Entities Involved |
Income Tax APPELLATE TRIBUNAL,
Messrs RENO PACKAGES (PVT.) LTD
|
| Judges |
MIAN SAQIB NISAR,
SH. AZMAT SAEED
|
| Lawyers |
Siraj-ud-Din Khalid,
Shahid Jamil Khan
|
| Petitioners |
Messrs RENO PACKAGES (PVT.) LTD
|
| Respondents |
others,
Income Tax APPELLATE TRIBUNAL
|
| Citations |
2005 SLD 2563,
2005 PTD 1176,
(2005) 92 TAX 108
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
13(1)(c),
62,
111,
116,
136
|