| Case ID |
738bbd07-2efe-4058-8979-05489bc437a1 |
| Body |
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| Case Number |
I.T.A. No. 672 of 1968-69 |
| Decision Date |
Oct 03, 1969 |
| Hearing Date |
|
| Decision |
The decision of the Income Tax Appellate Tribunal was to vacate the order of the Appellate Assistant Commissioner, allowing the Income Tax Officer to reassess the income from undisclosed sources. The tribunal held that the Income Tax Officer had the right to initiate proceedings under Section 34 of the Income Tax Act, 1922, based on definite information regarding undisclosed income. The tribunal emphasized that the failure of the assessee to discharge the onus of proving the source of income justified the assessment of the undisclosed income. The tribunal also noted that the provisions of Section 4(2B) were not relevant for the assessment year in question and that the income should be assessed in the years when the source came to surface. The case was remanded back to the Income Tax Officer for proper scrutiny of the claims made by the appellant regarding the timing of the investments. |
| Summary |
This case revolves around the interpretation and application of the Income Tax Act, 1922, particularly Section 34 concerning the reassessment of income from undisclosed sources. The Income Tax Appellate Tribunal examined whether the Income Tax Officer had sufficient information to initiate proceedings against the assessee for undisclosed income. The assessment originally made on Messrs. A... was challenged, leading to a significant discussion on the burden of proof required of the assessee. The tribunal clarified that the Income Tax Officer's assertion of undisclosed income was justified based on the evidence presented and the failure of the assessee to substantiate her claims regarding the source of income. This decision highlights the importance of proper documentation and the need for assessees to provide clear evidence of income sources to avoid reassessment under the Income Tax Act. The tribunal's ruling reinforces the principle that undisclosed income can be taxed in the year it is identified, and the procedural correctness of tax assessments is crucial in maintaining the integrity of tax laws. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
M. T. SIDDIQUI, JUDICIAL MEMBER (NOW PRESIDENT),
K. SALAHUDDIN, ACCOUNTANT MEMBER
|
| Lawyers |
Nasim Sabir, PTS., D.R., for the Appellant,
Muhammad Nawaz Khan, I.T.P., for the Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1970 SLD 750,
(1970) 21 TAX 10,
1970 PTD 4
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922,
Income-tax Ordinance, 1979
|
| Sections |
34,
4(2B),
13(1)(b),
65
|