| Case ID |
735785de-7aa5-4027-9cb4-4d72ef21b9bc |
| Body |
View case body. Login to View |
| Case Number |
I.T.Os. Nos. 457 and 458/LB of 1989-90 |
| Decision Date |
May 02, 1996 |
| Hearing Date |
Apr 25, 1996 |
| Decision |
The Appellate Tribunal Inland Revenue ruled that the assessments for the years 1981-82 and 1982-83 were annulled as they were completed without the necessary approval from the Central Board of Revenue (C.B.R.). The Tribunal emphasized the importance of adhering to the procedural requirements stipulated in the Income Tax Ordinance, particularly concerning the reassessment of income. The Assessing Officer's unilateral decision to reopen the assessments was found to be invalid, as it lacked the requisite C.B.R. approval, rendering the assessments legally unsustainable. The Tribunal's decision was based on the recognition of specific Circulars issued by the C.B.R. that provided safeguards for taxpayers, particularly concerning investments in Special National Fund Bonds. The Tribunal concluded that the department's appeals were devoid of merit and rejected them accordingly. |
| Summary |
This case revolves around the annulment of assessments made by the C.I.T.(A) for the assessment years 1981-82 and 1982-83. The crucial legal question was whether the Assessing Officer had the authority to reopen assessments without C.B.R. approval, as mandated by the Income Tax Ordinance, 1979. The Tribunal found that the Assessing Officer had disregarded C.B.R. Circulars that provided guidelines for such actions, particularly regarding Special National Fund Bonds intended to prevent the concealment of income. The Tribunal underscored the necessity for compliance with procedural formalities and the binding nature of C.B.R. instructions on tax officers. This landmark decision reinforces the legal framework governing income tax reassessments and highlights the protections available to taxpayers. The case illustrates the significance of procedural adherence in tax assessments and the role of C.B.R. in safeguarding taxpayer rights. Overall, it serves as a pivotal reference point for future tax-related disputes, particularly in relation to compliance with established circulars and the necessity for proper authorization in reopening assessments. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
ASHFAQ AHMAD, ACCOUNTANT MEMBER
|
| Lawyers |
Muhammad Aslam, D.R. for Appellant,
Saghir Tirmmy for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1997 SLD 116,
1997 PTD 900
|
| Other Citations |
(1984) PTD (Trib.) 70,
I.T.A. No. 1460/LB of 1982-83
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
65,
8
|