| Case ID |
ffaf431a-b4aa-409c-8176-0fb49811f3b8 |
| Body |
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| Case Number |
Complaint No.552 of 2002 |
| Decision Date |
Jul 18, 2002 |
| Hearing Date |
|
| Decision |
The Federal Tax Ombudsman found that the Assessing Officer's rejection of the authenticity of the lease agreement was unjustified. The Ombudsman highlighted that the genuineness of the lease arrangement was a question of fact that should have been verified with reference to the situation on the ground. It was observed that the assessments for the years 1999-2000 and 2000-2001 were based solely on the inference drawn from the complainant's wheat purchase agreements without proper inquiries into the leasing arrangement. The Ombudsman recommended that the income tax assessments for these years be set aside and directed the Commissioner to make fresh assessments after conducting proper inquiries. |
| Summary |
In the case of Messrs Bristal Flour Mills (Pvt.) Limited vs. Secretary, Revenue Division, the Federal Tax Ombudsman addressed a complaint related to income tax assessments for the years 1999-2000 and 2000-2001. The complainant contended that they had leased out their flour mill but faced challenges regarding the authenticity of the lease arrangement, which the Assessing Officer deemed non-genuine. The Ombudsman emphasized the necessity of verifying the genuineness of the lease agreement by conducting thorough inquiries rather than relying solely on inferences. The decision underscored the importance of due diligence in income tax assessments, particularly regarding leasing arrangements, and recommended that the assessments be set aside to allow for a fair evaluation of the case. This case highlights critical issues in tax law, lease agreements, and the responsibilities of tax authorities in ensuring just assessments. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Bristal Flour Mills (Pvt.) Limited,
District Food Controller, Faisalabad
|
| Judges |
JUSTICE (RETD.) SALEEM AKHTAR
|
| Lawyers |
Muhammad Bashir Malik (A.R. for the Complainant),
Rajab-ud-Din (I.A.C. Range-I, Companies Zone for Respondent)
|
| Petitioners |
Messrs BRISTAL FLOUR MILLS (PVT.) LIMITED, FAISALABAD
|
| Respondents |
SECRETARY, REVENUE DIVISION, ISLAMABAD
|
| Citations |
2002 SLD 431,
2002 PTD 2938,
(2003) 87 TAX 88
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979,
Federal Tax Ombudsman Ordinance, 2000
|
| Sections |
62,
9
|