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COMMISSIONER INLAND REVENUE (LEGAL DIVISION) LEGAL TAXPAYERS UNIT, ISLAMABAD vs KHUDADAD HEIGHTS, ISLAMABAD Ss — 2024 PTD 309 ISLAMABAD

Case information

Citation
2024 PTD 309 ISLAMABAD
Court
Islamabad High Court
Year
2024
Reporter
PTD
Parties
COMMISSIONER INLAND REVENUE (LEGAL DIVISION) LEGAL TAXPAYERS UNIT, ISLAMABAD vs KHUDADAD HEIGHTS, ISLAMABAD Ss
Subject matter
Tax & Customs
Provisions referred to
S. 122; 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

COMMISSIONER INLAND REVENUE (LEGAL DIVISION) LEGAL TAXPAYERS UNIT, ISLAMABAD VS KHUDADAD HEIGHTS, ISLAMABAD Ss. 122(5) & 133(1)---Reference---Reassessment---Definite information---Scope---Reassessment proceedings were initiated on the basis of bank statement of respondent / taxpayer---In view of the entries reflected in such bank statement tax department suspected that income of taxpayer might be higher than that which was offered up for taxation---Authorities assumed that all entries in bank statement constituted revenue without taking into account refunds issued by respondent / taxpayer to its customers as reflected in its tax return---Commissioner (Appeals) afforded respondent / taxpayer opportunity to explain entries in bank statement and taxpayer had successfully did so which was why the Commissioner (Appeals) then set aside additional demand generated after reassessment by Commissioner Inland Revenue---Validity---Findings of Commissioner (Appeals) itself demonstrated that the basis on which tax department initiated reassessment proceedings was not definite information---Such basis withered once a meaningful opportunity was provided to taxpayer to explain tax return that constituted original assessment---High Court declined to interfere in the order passed by Appellate Tribunal Inland Revenue, as it did not err in concluding that bank statements in and of themselves did not constitute definite information for purposes of S.122(5) of Income Tax Ordinance, 2001, as it stood at the relevant time---Reference was dismissed, in circumstances.

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