Law: Income Tax Ordinance, 2001

Section: 120,120(1),122(1),122(8),122(9)readwith1 22(5),21,174

[Income Tax Ordinance (XLIX of 2001)]...... Sections 120(1), 122(1), 122(8), 122(9) read with 122(5), 21, 174,... Return,.. Claim,, Deduction,, Disallowance,, Definition information,, Show-cause Notice,, Misinterpretation of order,, Amendment,.. Fake invoices,.. Proceedings in the instant case were initiated on the basis of information regarding purchases shown by the appellant from two concerns, which were rejected in the sales tax proceedings by disallowing the input tax claim, the issue of disallowance was challenged in appeals and now pending before the Honourable Lahore High Court in a tax reference,, The criminal cases were registered against the above said concerns by the Directorate of Intelligence and Investigation, FBR, Lahore, before the Special Judge Customs, Taxation and Anti-Smuggling for the issuance of fake sales tax invoices and resultantly both were convicted by the court,.. This was the basis on which the taxation officer issued Show-cause Notice tax-payer for disallowance of purchases made by these two concerns amounting to Rs.6,500,000/-,... Department was having a definite information on the basis of which the Show-cause Notice was issued. The disallowance of input tax on the basis of fictitious purchases made on the strength of fake invoices, the admission of the fraudulent suppliers before the court of Special Judge Customs, Taxation and Anti-Smuggling and the observation of learned ATIR as well as CIR(Appeals) in this respect, which was sufficient to prove that the department was in possession of definite information,, As per law the tax-payer shall provide sufficient proof in the shape of receipt or other record or evidence in support of claimed deduction to the department,.. It was held by the Lahore High Court, Rawalpindi Bench in an unreported case referred supra that "reading of section 122(5) of the Income Tax Ordinance, 2001, therefore, shows that information in a definite, final and conclusive form must already exists in some document or record and the time of requisition. Any information which is incomplete and requires further processing falls outside the domain of definite information and give best pass for a departmental…

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