2014 PLP 1032 (PTD)
Mst. FARKHANDA FAROOQI Versus C.I.R., R.T.O., LAHORE
| Citation | 2014 PLP 1032 (PTD) |
| Forum / Court | Inland Revenue Appellate Tribunal |
| Bench Members | Ch. Anwaar-ul-Haq, Judicial Member |
| Parties | Mst. FARKHANDA FAROOQI Versus C.I.R., R.T.O., LAHORE |
| Primary Law | Income Tax Ordinance (XLIX of 2001) |
Q1: What are the key laws and sections cited in 2014 PLP 1032 (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 1032 (PTD)?
The case was heard and decided by the Inland Revenue Appellate Tribunal bench comprising: Ch. Anwaar-ul-Haq, Judicial Member.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2014 PLP 1032 (PTD) (Mst. FARKHANDA FAROOQI Versus C.I.R., R.T.O., LAHORE). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Ms. Farhat Hayat Shah, D.R. for Respondent.
- Date of hearing: 27th January, 2014.
Headnotes / Summary
Ss.221 & 121(1)
Scope
Application for re-calling of order
Taxpayer contended that ex parte order under S.121 (1) of the Income Tax Ordinance, 2001 could only be passed where no return had been filed; and Appellate Tribunal while delivering decision had apparently lost sight of High Court Full Bench decision reported as 2013 PTD 837, on the issue and as such error of law had incurred which could be rectified by resorting to the provisions of S.221 of the Income Tax Ordinance, 2001
High Court, in the said Full Bench Judgment had held that "prior to the amendment brought about in Ss. 121 & 177(10), through Finance Act, 2010, S. 121(1)(d) did not apply to cases where return of total income had been filed and did not envisage a second assessment order"
Following the principle of consistency, applicant also deserved the same relief as accorded to other taxpayer
Order was modified by following the decision of the High Court and dismissed the departmental appeal for tax year 2008 and maintained the order passed by the First Appellate Authority. 2010 PTD (Trib.) 2602; 2009 PTD (Trib.) 30; I.T.A. No.697/LB of 2009 and M.A. No.123/LB of 2010 ref. 2013 PTD 837 and I.T.A. No.773-6/IB of 2012 rel. None of Applicant.
Judgment & Decree
CH. ANWAAR-UL-HAQ (JUDICIAL MEMBER).
The titled miscellaneous application has been preferred at the instance of taxpayer seeking recall/rectification of Tribunal's order dated 3-2-2012, contained in I.T.A. No. 1226/LB/2010.
2. As per grounds filed, it is the applicant's contention that the learned Tribunal vide order dated 27-2-2012, has remanded the departmental appeal in the case of the taxpayer to the Taxation Officer for fresh adjudication. It is asserted in the grounds that the taxpayer filed his return of income and subsequent order passed under section 121(1) was rightly cancelled by the first appellate authority after relying upon the decision of Full Bench reported as 2010 PTD (Trib.) 2602. It is further asserted in the ground that while disposing the departmental the Tribunal has ignored its earlier orders cited as 2010 PTD (Trib.) 2602, 2009 PTD (Trib.) 30, I.T.A. No. 697LB/2009 dated 5-5-2010 and M.A. No. 123/LB/2010, whereby it has been held that ex parte order under section 121(1) could only be passed where no return had been filed. In view of the above, it is contended in the grounds that the learned Tribunal while delivering the decision has apparently lost sight of Full Bench decision on the issue and as such as error of law has incurred which can be rectified by resorting to the provisions of section 221 of the Income Tax Ordinance, 2001. On the contrary, the learned DR opposes the application filed by the taxpayer and asserted that no mistake is made by the Tribunal while deciding the appeal of the department which can be rectified at this stage.
3. The issue of best judgment assessment framed under section 121 of the Income Tax Ordinance, 2001, has been examined by the Hon'ble Lahore High Court Lahore in the case 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), through 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."
4. The issue of best judgment assessment framed under section 121 has also been examined by this Tribunal vide order dated 20-8-2013 in I.T.As. Nos. 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, the present applicant is also deserved the same relief as accorded to other taxpayers. Under the circumstances, I hereby modify the earlier order of this Tribunal dated 27-2-2012 by following the above decisions of Hon'ble High Court and dismiss the department appeal for tax year 2008 and maintain the order dated 7-6-2010, passed by the learned CIR (A), Zone-II, Lahore.
5. The application is allowed. CMA/18/Tax(Trib.) Application allowed.