| Case ID |
ec7a803f-4b17-4523-aeec-343d36e54880 |
| Body |
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| Case Number |
ITA No. 1031/LB of 1990-91, 1032/LB of 1990-91 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Income Tax Appellate Tribunal ruled that the notice issued under Section 65 of the Income Tax Ordinance was without lawful authority, leading to the annulment of the assessment framed in pursuance thereof. The Tribunal emphasized that the assessing officer had previously accepted the appellant's declared income and that the initiation of additional assessment proceedings constituted a change of opinion, which is not permissible under law. The ruling aligns with precedents that stress the necessity of a conscious order based on the facts and materials available at the time of the original assessment. The Tribunal's decision reinforces the principle that once an assessment has been completed with all relevant facts disclosed, additional assessments based on the same facts are not justified unless new information is introduced. The penalty imposed under Section 91 was also cancelled as a result of this ruling. |
| Summary |
In the case before the Income Tax Appellate Tribunal, the central issue revolved around the validity of additional assessments initiated under Section 65 of the Income Tax Ordinance, 1979. The appellant, a vendor of chemicals, initially filed a return declaring an income of Rs. 360,000. The assessing officer accepted this return after issuing several notices for clarification. However, subsequent notices proposed a higher valuation of a property owned by the appellant, leading to increased assessments. The Tribunal found that the assessing officer's actions constituted a change of opinion, which is not legally permissible. The ruling cited several precedents that reinforce the principle that an assessment cannot be altered without new evidence. This decision has significant implications for taxpayers, emphasizing the importance of fair and consistent assessment practices. The Tribunal's findings reiterate that the Income Tax authorities must adhere to established legal standards, ensuring that taxpayers are not subjected to arbitrary reassessments. The case serves as a reminder of the legal protections afforded to taxpayers against unwarranted actions by tax authorities. |
| Court |
Income Tax Appellate Tribunal
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| Entities Involved |
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| Judges |
MR. A. A. ZUBERI, ACCOUNTANT MEMBER,
MR. NASIM SIKANDAR, JUDICIAL MEMBER
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| Lawyers |
Mr. Zia Ullah Kiyani
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| Petitioners |
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| Respondents |
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| Citations |
1993 SLD 265,
1993 PTCL 793
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| Other Citations |
1990-PTD-873,
1969-SCMR-175,
1991-PTD-217,
(1992) 65-TAX-271,
(1986) 54-TAX-75 (Trib.),
(1983) 48-TAX-6 (Trib.)
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| Laws Involved |
Income Tax Ordinance, 1979
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| Sections |
13(1)(d),
59(1),
65
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