2014 PLP (Trib (PTD)
Dr. WAJID RAZA JAFRI, LAHORE Versus C.I.R. ZONE-IX, R.T.O., LAHORE
| Citation | 2014 PLP (Trib (PTD) |
| Forum / Court | Inland Revenue Appellate Tribunal |
| Bench Members | Ch. Anwaar ul Haq, Judicial Member and Sohail Afzal, Accountant Member |
| Parties | Dr. WAJID RAZA JAFRI, LAHORE Versus C.I.R. ZONE-IX, R.T.O., LAHORE |
| Primary Law | Income Tax Ordinance (XLIX of 2001) |
Q1: What are the key laws and sections cited in 2014 PLP (Trib (PTD)?
This judgment primarily cites: Income Tax Ordinance (XLIX of 2001) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2014 PLP (Trib (PTD)?
The case was heard and decided by the Inland Revenue Appellate Tribunal bench comprising: Ch. Anwaar ul Haq, Judicial Member and Sohail Afzal, Accountant Member.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2014 PLP (Trib (PTD) (Dr. WAJID RAZA JAFRI, LAHORE Versus C.I.R. ZONE-IX, R.T.O., LAHORE). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Ch. Muhammad Saleem Jahangir for Appellant.
- Muhammad Nazir Rizvi, D.R. for Respondent.
- Date of hearing: 16th July, 2013.
Headnotes / Summary
Ss.121(1)(d), 177 & 120
Tax year 2008
Taxpayer contended that assessing officer was not justified to pass order under S.121(1)(d) when a valid return had been filed; and First Appellate Authority was not right to remand the case for de novo proceedings
Prior to amendment brought about in Ss.121 & 177(10), through Finance Act, 2010, S.121(1)(d) of the Income Tax Ordinance, 2001 did not apply to cases where return of total income had been filed and it did not envisage a second assessment order
Appellate Tribunal in circumstances, annulled the orders of both the authorities below. 2013 PTD 837 and I.T.A. No.773-6/IB of 2012 rel.
Judgment & Decree
SOHAIL AFZAL, ACCOUNTANT MEMBER.
Vide this appeal, the assessee-appellant has assailed the order of the learned Commissioner Inland Revenue (Appeals), Multan dated 13-3-2013 pertaining to tax year 2008.
2. Both the learned representatives appearing at the bar have been heard and the relevant available record perused.
3. Facts leading to disposal of the instant appeal are that this is the second round of litigation and the appellant taxpayer in the instant case, an individual, declared income at Rs.375,678 from sale/purchase of poultry for the tax year 2008. However, the case was selected for audit under section 177 and the assessment was amended by the DCIR vide his order dated 28-11-2011 passed under section 122(1)(d) of the Income Tax Ordinance, 2001 at Rs.1,517,183 against the declared income by estimating the sales and applied G.P. rate @ 27%. Against this treatment, the taxpayer filed appeal before the learned CIR(A) who remanded the assessment order for de novo proceedings. This has forced the taxpayer to file appeal before the Hon'ble Appellate Tribunal.
4. At the very outset of his arguments, the learned taken a legal stance and has stressed that the learned assessing officer was not justified to pass order under section 121(1)(d) when a valid return has been filed by the taxpayer and the learned CIR(A) was not justified to remand the case to the assessing officer for de novo proceedings. He has relied upon the judgment of the Hon'ble Lahore High Court reported as 2013 PTD 837 in which it has been held as under:-- "For the above reasons, we are of the view that prior to the amendment brought about in sections 121 and 177(10), though Finance Act, 2010 section 121(1)(d) did not apply to cases where return of total income had been filed and did not envisage a second assessment order" It is evident from the impugned order itself that the taxpayer had filed a valid return of total income for the tax year, 2008, which was deemed to be assessed under section 120 of the Income Tax Ordinance, 2001.
5. The learned D.R. has supported orders of the authorities below for the reasons given therein that the taxpayer did not cooperate in the proceedings, etc.
6. The issue of best judgment assessment framed under section 121 of the Income Tax Ordinance, 2001 has also been examined by this Tribunal vide order dated 20-8-2013 in I.T.A. No.773-6/IB/2012 whereby, the ratio decidendi of the judgment of the Hon'ble Lahore High Court, Lahore 2013 PTD 837 (H.C.Lah) cited above was followed. Therefore, following the principal of consistency, we annul the orders of both the authorities below.
7. As a result, the appeal of the taxpayer is allowed. CMA/177/Tax(Trib.) Appeal accepted.