Legal Case Summary

Case Details
Case ID 5e7f67f0-e870-45ce-9f7b-2edd5111d517
Body View case body.
Case Number I.T.A. No.982/IB of 2009
Decision Date Mar 17, 2010
Hearing Date
Decision The appeal filed by the assessee was accepted. The tribunal ruled that the deemed assessment order made by the Commissioner is valid and cannot be rectified by a junior officer such as the Taxation Officer. The Tribunal held that additional tax can only be recovered from the withholding agent who failed to deduct the correct amount of tax at source, and not from the taxpayer. The rectification order passed by the Taxation Officer was deemed to be beyond jurisdiction as the original order was made by the Commissioner. Therefore, the order regarding the additional tax was vacated, emphasizing that the principal amount had already been settled. The interpretation of the law should not defeat the ends of justice.
Summary The case revolves around the interpretation of the Income Tax Ordinance, 2001, specifically sections related to deemed assessments, rectification of orders, and tax recovery. The Income Tax Appellate Tribunal addressed the validity of a rectification order made by a Taxation Officer, challenging the jurisdiction and authority of junior officers in rectifying decisions made by their superiors. The case highlights the responsibilities of withholding agents in tax collection and the legal implications of failing to deduct tax at the correct rate. The Tribunal's decision underscores the importance of adhering to statutory provisions in tax law and ensuring that the taxpayer is not unfairly penalized for administrative mistakes. This case serves as a crucial reference for understanding the legal framework governing income tax assessments and appeals in Pakistan.
Court Income Tax Appellate Tribunal
Entities Involved Taxpayer
Judges Munsif Khan Minhas, Istataat Ali
Lawyers
Petitioners
Respondents
Citations 2010 SLD 2274, 2010 PTD 1440, (2010) 102 TAX 154
Other Citations Not available
Laws Involved Income Tax Ordinance, 2001
Sections 120, 120(1)(a), 221, 161, 162