COMMISSIONER OF INCOME-TAX, ZONE-II, LAHORE VS Messrs CANDOUR INTERNATIONAL (PVT.) LIMITED, LAHORE, 2005 PTD-LAHORE-HIGH-COURT-LAHORE 2037 (2005)

Income Tax Appellate Tribunal Rules, 1981---

----R. 10---Appeal---Grounds set-forth in memorandum of appeal being in argumentative and narrative form, appeal was dismissed---Validity---Such dismissal was not in accordance with law---High Court set aside impugned order and remanded case to Tribunal for its decision on merits.

CIT v. Muhammad Tariq Javed (2000) 82 Tax 67 and Pakistan Industrial Gases Ltd. v. CIT and another 2000 PTD 2903 rel.

Sajjad Ali Jaffri for Appellant.

Nemo. for Respondent.

Date of hearing: 10th March, 2005.

JUDGMENT

NASIM SIKANDAR, J.---This is a reference made by the Lahore Bench of the Income Tax Appellate Tribunal under section 136(1) of the late Income Tax Ordinance, 1979. Following question of law has been referred for our consideration and opinion:--

"Whether in the law and facts of the matter the learned IATA was justified to dismiss the appeal filed by the Revenue on technical grounds?"

2. The respondent/assessee is a private limited company and during the period relevant to the assessment year 1993-94 derived income from export of leather and sports goods etc. As against returned income of Rs.3,360 assessment for the year was framed Rs.202,046 in the process profit from sale of car as also an addition under section 12(18) of the late Ordinance was made to reach the total income as noted above. Learned Commissioner of Income Tax (Appeals) on 19-10-1995 partly allowed the appeal filed by the assessee inasmuch as the addition made under section 12(18) of the Ordinance was directed to be deleted.

3. The departmental appeal assailing the said relief was dismissed by the learned Tribunal. The operative part of the order contained in para. 3 reads as under:--

"(3) Perusal of the appeal record reveals that the grounds of appeal' filed by the Revenue are not set-forth in accordance with the A rule 10 of ITAT Rules, 1981. This rule envisages that the grounds of appeal shall be consisted without argumention or in the narrative form where as these have set-forth by the department in the argumentative and in the narrative form. Since the grounds of appeal raised in the Memo. of Appeal do not conform with rule 10 of the Income Tax Appellate Tribunal Rules, 1981, therefore, the departmental appeal pertaining to assessment year 1993-94 is dismissed being defective."

4. After hearing the learned counsel for the Revenue we will readily agree that dismissal of departmental appeal for the reason that grounds for appeal were vague is not in accordance with law. The issue with regard to the application of different rules of the ITAT Rules, 1981 was considered by this Court in re: CIT v. Muhammad Tariq Javed (2000) 82 Tax 67 and re: Pakistan Industrial Gases Ltd. v. CIT and another (2000 PTD 2903). In that' case it was inter alia observed that rule 15 of the said rules as amended on January 9, 1986 provided that where a memorandum of appeal was not filed in the manner specified in the rules, the Registrar or the Officer authorized under rule 7 could return it to the appellant to bring it in conformity with the provisions of the rules within such time as he might fix. Sub-rule (3) of the rule 15 explained the consequences if memorandum of appeal was not represented within the prescribed period or, the appellant failed to comply with the provision of sub-rule (1). In, that case the Registrar was required to place the memorandum of appeal before the Tribunal for such orders as it might deem fit. In other words the case was to be placed before the Bench as an objection case.

5. Accordingly the impugned order of the Tribunal is set aside and the matter is remitted to them for their re-consideration of the issues raised by the Revenue in its appeal.

6. Disposed of.

S.A.K./C-85/LCase remanded.