Law: Income Tax Ordinance, 2001

Section: 114,182(1)

Income Tax Ordinance (XLIX of 2001)--- ----Ss.114 & 182(1)---Non-filing of annual income tax return within prescribed period---Penalty for such failure of taxpayer, imposition of---Scope---Such penalty would be imposed on basis of tax payable in respect of relevant tax year and could not be levied on basis of tax chargeable---Illustration ORDER SOHAIL AFZAL (ACCOUNTANT MEMBER).---This appeal has been filed by the taxpayer against the order dated 15-6-2010 passed by the learned CIR (Appeal) confirming the penalty order dated 10-10-2009. 2. Facts leading for disposal of the instant case are that the Taxpayer is registered as public limited company, engaged in the production of ceramic tiles and other ceramic items. The appellant was obliged to submit return for the tax year 2008 on or before 31-12-2008 under section 114 of Income Tax Ordinance, 2001, however the appellant e-filed the said return on 6-3-2009 which was late by 64 days. Consequently the Deputy Commissioner issued Notice No. 114 dated 5-8-2009 to the appellant wherein a penalty amounting to Rs.348,045 under section 182(1) was proposed for late filing of return. In response thereto, the appellant filed Reply dated 17-8-2009 and pointed out the actual tax liability amounting to Rs.5,514,895, tax deducted amounting to Rs.4,137,826 and resultant tax payable amounting to Rs.1,337,069 hence the penalty on the tax payable was worked out as Rs.88,132. The Deputy Commissioner being dissatisfied with the said assertions of appellant sent another notice to the appellant bearing No. 184 dated 20-8-2009 and expressed his intentions to impose penalty amounting to Rs.352,953 on the basis of Total Tax Liability amounting to Rs.5,514,895 terming it the tax payable by the appellant. Again the appellant filed detailed Reply dated 26-8-2009 to the said Notice wherein apart from providing the reasonable cause for the delayed filing of return, the term "Amount of Tax Payable" was also explained in detail. The taxation officer, however, feeling dissatisfied with the appellant's contentions rejected the said replies and maintained the proposed penalty amounting to Rs.352,953 through the Order dated 10-10-2009. Being…

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