| Case ID |
512551ce-7b3d-4d92-afcc-eff18662c1d0 |
| Body |
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| Case Number |
Income Tax Appeal No.3 of 1998 |
| Decision Date |
Jun 08, 2000 |
| Hearing Date |
Jun 06, 2000 |
| Decision |
The appeal was dismissed as the Appellate Tribunal upheld the penalty reduction imposed by the First Appellate Authority. The court found that the questions of law raised did not arise out of the impugned order, as the interpretation of terms was not relevant to the facts of the case. The court emphasized that penalty imposition is discretionary and must consider reasonable cause. The case underscored that the presence of reasonable cause can exempt the assessee from penalty, and the burden of proof lies with the department to show that a wilful default occurred. |
| Summary |
This case revolves around the imposition of penalties under the Income Tax Ordinance, 1979 due to the late filing of income tax returns. The Peshawar High Court examined whether the penalty imposed by the Assessing Officer was justified, considering the reasonable cause provided by the assessee for the delay. The court emphasized the importance of reasonable cause in tax law and how it can affect penalty imposition. The judgment highlights the discretionary power of the authorities in tax matters, particularly in the context of amendments to the law that change the wording from 'may' to 'shall'. However, regardless of the change in terminology, the presence of a reasonable cause remains a critical factor in determining whether a penalty should be applied. Overall, the ruling reinforces the need for tax authorities to carefully evaluate the circumstances surrounding late filings to ensure fair treatment under the law. |
| Court |
Peshawar High Court
|
| Entities Involved |
Not available
|
| Judges |
MIAN SHAKIRULLAH JAN,
TALAT QAYUM QURESHI
|
| Lawyers |
Eid Muhammad Khattak,
Abdur Razzaq,
Azhar Naeem Qurni
|
| Petitioners |
COMMISSIONER OF Income Tax/Wealth Tax, Peshawar, Zone PR
|
| Respondents |
MUHAMMAD ZAHOOR,
PALVESHAH FURNITURE,
SUPPLY BAZAR,
ABBOTTABAD
|
| Citations |
2000 SLD 129,
2000 PTD 3400,
(2001) 84 TAX 172,
(2001) 83 TAX 27
|
| Other Citations |
1980 PTD 91,
(1968) 17 Tax 7 (Trib.)
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
108,
136
|