| Case ID |
d88f6e65-919b-488c-9ae3-04aa49fbcb6d |
| Body |
View case body. Login to View |
| Case Number |
ITA No. 2631/LB/2016 |
| Decision Date |
Dec 01, 2016 |
| Hearing Date |
Dec 01, 2016 |
| Decision |
The Appellate Tribunal Inland Revenue, Lahore, determined that the learned CIR(A) erred in annulling the assessment order. The tribunal remanded the case back to the assessing officer for a thorough probe and verification of certain facts, particularly the granting of approval by the CIR to revise the return. Additionally, it directed that a reasonable opportunity of being heard should be afforded to the taxpayer before passing the fresh order. |
| Summary |
In the landmark case ITA No. 2631/LB/2016, adjudicated by the Appellate Tribunal Inland Revenue in Lahore on December 1, 2016, the appellant, Mr. Muhammad Amin of Amin Battery Services, contested the assessment order issued under the Income Tax Ordinance for the tax year 2012. The taxpayer declared an income of Rs.345,000, which was scrutinized and deemed inconsistent with actual purchases amounting to Rs.41,070,555 from Pakistan Accumulators [Pvt] Limited, significantly higher than the declared Rs.2,230,000. This discrepancy led to amendment proceedings under Sections 120 and 122 of the Ordinance. The appellant argued that the assessment was conducted arbitrarily without proper record consultation and denied a fair hearing, violating principles of natural justice. The initial annulment by the CIR(A) was overturned by the tribunal, emphasizing the necessity for a meticulous reassessment process. Key legal provisions discussed include Sections 120, 122(1), 122(5), 122(9), and 114(6) of the Income Tax Ordinance. The case underscores the importance of accurate income declaration, the procedural fairness in tax assessments, and the role of appellate tribunals in ensuring justice. Legal professionals, including Advocate Rana Muhammad Afzal and Mr. Behzad Anwar, represented the parties. The tribunal's decision to remand the case for a fresh order, ensuring thorough verification and affording the taxpayer a fair opportunity to be heard, sets a precedent in tax dispute resolutions. This case is pivotal for tax law practitioners and entities involved in corporate taxation, highlighting the critical balance between tax compliance and administrative fairness. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
AMIN BATTERY SERVICES,
M/s. Pakistan Accumulators [Pvt] Limited
|
| Judges |
MUHAMMAD WASEEM CH.,
MUHAMMAD AHMAD
|
| Lawyers |
Rana Muhammad Afzal,
Mr. Behzad Anwar
|
| Petitioners |
MR. MUHAMMAD AMIN PROP: AMIN BATTERY SERVICES
|
| Respondents |
THE CIR, RTO, SHEIKHUPURA
|
| Citations |
2017 SLD 167
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance
|
| Sections |
120,
122(9),
122(1),
122(5),
114(6)
|