Income Tax Proceedings

2013 PTD 87 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN Judicial Precedent

Ss.176, 111(1)(b) & 122(5A)Qanun-e-Shahadat (10 of 1984) Art.199Notice to obtain information or evidenceIncome tax proceedingsQanun-e-Shahadat 1984, applicability of

Taxpayer contended Commissioner only granted permission that only to ascertain a pay order but the Taxation Officer obtained information of bank account for which there was no permission; that bank statement on the basis of which addition had been made under S.111(1)(b) of the Income Tax Ordinance, 2001 was not confronted and violated the provisions of Qanun-e-Shahadat 1984, and that evidence had been used at the back of the taxpayer and law provided that an opportunity be provided to a person to examine or confront the evidence purported to be used against him

Validity

Mandatory approval under S.176 of the Income Tax Ordinance, 2001 given to the Taxation officer for calling information from bank was in respect of Pay order

Taxation officer travelled beyond his jurisdiction and called for the bank statement and wrote a letter for which no approval was obtained by the Commissioner

Action of the Taxation officer was without legal sanctity and of no legal effect

Taxpayer was not confronted with the bank statement in question and no opportunity was provided to him to examine the same

Entire proceedings were held in utter disregard to Qanun-e-Shahadat, 1984

Qanun-e-Shahadat, 1984 was applicable to all income tax proceedings

Income tax authorities exercised quasi judicial powers and jurisdiction and without affording an opportunity to the taxpayer no reliance could be placed on any such statement particularly, when quasi judicial order was assailed

Order of First Appellate Authority was vacated and orders passed by the Taxation officer, whereby additions were made under S.111(1)(b) of the Income Tax Ordinance, 2001, was annulled and penalty imposed under S.182 of the Income Tax Ordinance, 2001 was deleted

Appeal was disposed of accordingly.

2011 PTD 925 KARACHI-HIGH-COURT-SINDH Judicial Precedent

Income tax proceedingsRes judicata and estoppel, rules ofApplicability

Such rules would not apply to such proceedings as Assessing Officer on knowing facts subsequently could take a decision different from that taken earlier by him or his predecessor

Income treated in a particular manner in one year, if accrued during another year, might be treated in a different manner in such other year

Principles.

1968 PTD 862 CALCUTTA-HIGH-COURT-INDIA Judicial Precedent

Income Tax Proceedings Income-tax proceedings

Transfer of officer who heard a case, before final order is passed-Whether successor bound to hear the case afresh-Guiding principle.

1965 PTD 675 SUPREME-COURT-INDIA Judicial Precedent

Income Tax Proceedings Income-tax proceedings-Necessity for quick disposal

Stages at which evidence may be given-Indian Income-tax Act, 1922, Ss. 23 & 31(2)-Appellate Tribunal Rules, 1946, r. 29 -Income-tax (Appellate Tribunal) Rules, 1963, r. 29.