Law: Income Tax Ordinance, 2001

Section: 124,177,120(1),122(1),111(1)(c),39(4)

[Income Tax Ordinance (XLIX of 2001)].......Sections 124, 177, 120(1), 122 (1), 111(1) (c), 39(4),,. Return,.. Loss, declared of,, Audit, selected for,.. Amendment,, Additions,. Appellant filed appeal before the CIR(A-II) who set aside the amended assessment order but the taxation officer repeated the earlier treatment which was again contested in appeal before the CIR (Appeals -II) but without success, hence the instant appeal,,. AR contented that the authorities below had not only failed to comprehend the accounting entries regarding disclosure of purchases made in the audited statement of accounts but also failed to apply their mind to the facts of the case in a judicious manner, the figure of trade credits on account of purchases was inclusive of payable sales tax as the component of sales tax was an integral part of the purchases as well as the payable liability, during the course of proceedings before the taxation officer as well as the CIR(A) this fact was explained with the help of sales tax invoices as well as sales tax returns but both the authorities failed to understand the simple accounting proposition which was otherwise more than obvious, apart from being supported by the audited statement of accounts as well as relevant sales tax returns, he explained that the observation of the learned taxation officer to the effect that the component sheet was illogical and reflected lack of acquaintance with a simple and plain accounting concept, regarding the advance of Rs. 4,433,164, he stated that an advance of $71,500 had been received in cash in pursuance of a written agreement dated 26-05-2007 executed between the Appellant and M/s. Halim Sadat Brothers Co. Ltd., an Afghan Company, for the sale of Machinery, the amount of advance was converted into Pak currency on the closing date and declared in the balance sheet for the year ended on 30-06-2007, this deal, however, did not materialize and the amount of advance was returned to the Afghan Company in the next year and this fact had also been disclosed in the audit accounts of the next year, the Taxation Officer added the said amount to the income of the company with the observation that neither at the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492