| Case ID |
ebb2e069-83f9-4489-9df3-5caecb35ba5e |
| Body |
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| Case Number |
Civil Petitions Nos. 648-L, 649-L and 650-L of 202 |
| Decision Date |
May 31, 2022 |
| Hearing Date |
May 31, 2022 |
| Decision |
The Supreme Court dismissed the petitions, confirming the decisions of the lower courts regarding the concealment of income. The Court emphasized the importance of accurately reporting business income and the implications of using sections 111(1)(d) and 122(5) of the Income Tax Ordinance. The ruling clarified that suppressed production or sales must be considered chargeable to tax, reinforcing the duty of tax authorities to provide clear guidelines for assessment adjustments. The taxpayer's claims regarding expenses were not sufficient to alter the tax liability determined by the authorities. |
| Summary |
This case examines the application of the Income Tax Ordinance, 2001, particularly focusing on sections 111(1)(d) and 122(5) relating to the concealment of business income. The Supreme Court of Pakistan addressed the issue of whether suppressed production or sales could be considered chargeable to tax. The Court upheld the lower courts' decisions, emphasizing that the taxpayer must accurately declare all sources of income. This ruling is significant for taxpayers and tax authorities, providing clarity on tax obligations and the standards for assessing concealed income. The decision reinforces the need for transparent tax reporting and adherence to legal provisions in income declarations, impacting future tax assessments and compliance practices. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
Ijaz ul Ahsan,
Munib Akhtar,
Sayyed Mazahar Ali Akbar Naqvi
|
| Lawyers |
Ch. Muhammad Shakeel, Advocate Supreme Court,
Naeem Hassan, Secretary (Litigation), FBR,
Syed Mansoor Ali Bukhari, Advocate Supreme Court
|
| Petitioners |
COMMISSIONER INLAND REVENUE, ZONE-II, REGIONAL TAX OFFICE, (RTO) LAHORE
|
| Respondents |
MIAN LIAQAT ALI PROPRIETOR, LIAQAT HOSPITAL, HOUSE NO.6, STREET NO.6, LAL PUL, PANJ PIR ROAD, MUGHALPURA, LAHORE
|
| Citations |
2023 SLD 563,
2023 SCMR 534
|
| Other Citations |
Waris Meah v. The State and another PLD 1958 SC 157,
Jibendra Kishore Achharya Chowdhury v. Province of East Pakistan PLD 1957 SC 9
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
111(1),
111(1)(d),
122,
122(5),
237
|