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SAMINA YASMIN, PROP; FAISAL ELECTRONICS, WAZIRABAD vs COMMISSIONER INLAND REVENUE, RTO, GUJRANWALA Ss — 2022 PTD 1319 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

Case information

Citation
2022 PTD 1319 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN
Year
2022
Reporter
PTD
Parties
SAMINA YASMIN, PROP; FAISAL ELECTRONICS, WAZIRABAD vs COMMISSIONER INLAND REVENUE, RTO, GUJRANWALA Ss
Subject matter
Tax & Customs
Provisions referred to
S. 122; S. 177; Income Tax Ordinance

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

SAMINA YASMIN, PROP; FAISAL ELECTRONICS, WAZIRABAD VS COMMISSIONER INLAND REVENUE, RTO, GUJRANWALA Ss.122 & 177---amendment of assessments---audit---Definite information---Non-consideration of taxpayer's explanation---Effect---appellant/ taxpayer assailed orders passed by Commissioner Inland Revenue (CIR) (appeals) and assessing officer---Validity---assessing officer by considering the difference between declared receipts and Bank credit entries as suppressed income had added the income without proving exact nexus of the transactions---Neither the assessing officer nor the CIR (appeals) had made any observation on the explanation of the taxpayer that the disputed transactions were made for personal use---Only information for the purpose of 'definite information' that the assessing officer possessed was the difference in amount between declared receipts and credit entries---Requirements of S.122(5) of Income Tax Ordinance, 2001, were not met---after completion of audit, the authority had to issue an audit report, containing all the issues raised in audit and to provide an opportunity to settle the said issues prior to commencement of amendment proceedings---Language of subsection (6) of S. 177 was express, explicit and mandatory to the effect that the Commissioner could amend the assessment only after obtaining taxpayer's explanation on all the issues raised in the audit report---Confrontation on the issues raised in audit was mandatory and sine qua non, in absence whereof the judicial proceedings could not be triggered or commenced---assessing officer had failed to comply with the mandatory provisions relating to audit proceedings and amendment, therefore, the additions and disallowances were annulled---appeal was allowed.

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