Law: Income Tax Ordinance, 2001

Section: 120,122(9),122(1)

[Income Tax Ordinance (XLIX of 2001)]...... Sections 120, 122(9), 122(1).,, Return,.. Purchase of vehicles,, Show-cause Notice,,. Assessment,, Amendment,,. Definite Information,, Appeal,. Tax-payer contended that the department raised demand against the tax-payer was illegal, on vague information, presumption and sketchy enquiry through the Inspector Income Tax and, further contended that report of the Inspector was based on fishing inquiries without any proof/evidence and could not have been made basis for any estimation of profit, urged that the impugned order was not sustainable as the provisions of Section 122 of the Income Tax Ordinance, 2001 could not be invoked on the basis of presumptions and assumptions without any "Definite Information",, Tribunal dismissed the appeal while observing that vehicles purchased from the company were booked by the tax-payer on his own CNIC No. and computerized record of the company, dealer and that of Excise & Taxation Department constitute definite information; aspect that dealer made investment by using CNIC No. of the petitioner paying him a nominal amount and in support referral agreement has been made to avoid tax payment is not of any help to the taxpayer; to deviate through taking plea of referral agreement and to evade tax due which already stands paid in the Government exchequer means to create refund on whimsical afterthought pleading cannot be encouraged; income tax is to be paid because earning is there; dealer has earned profit and he has made tax payments to avoid penalties and further complication; tax payment has been made by respective dealer in the name of tax-payer for using their CNIC on the intervention of tax department; not only dealers, through this practice has earned profit but also deprived the bona-fide needy to get his vehicle well within time and also provided an opportunity to manufacturer company to use the money of the person for booking of the car for three and four months without any interest; car dealers has deposited the tax in the name of person whose CNIC has been used; through such devised referral agreement, refund cannot be allowed from Government Exchequer because tax due is…

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