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THIS ORDER PASSED BY: MASOOD AKHTAR SHAHEEDI, ACCOUNTANT MEMBER:----------------- Through the titled appeal the department has challenged the order dated 30.04.2014 passed by the learned CIR(A-II), Lahore, pertaining to tax year 2012. 2. Facts of the case are that the taxpayer is a private limited company engaged in the business of manufacturing of rubber products. Income tax return for the tax year 2012 was e-filed declaring net income of Rs. 18,558,065/-which was treated to be deemed assessment order in terms of Section 120(1) of the Income Tax Ordinance, 2001 (the Ordinance). The case was selected for audit u/s 214C of the Ordinance by the FBR. On scrutiny of books of accounts the Assessing Officer found various discrepancies which were confronted to the taxpayer through show cause notice u/s 122(9) of the Ordinance. The reply filed by the taxpayer could not satisfy the assessing officer, therefore, assessment was amended u/s 122(1)/(5) of the Ordinance at an income of Rs.18,901,882/-. Being aggrieved with the treatment of the Assessing Officer the taxpayer filed appeal before the CIR(A) who deleted the various additions. Against which the department has filed the instant appeal before this Tribunal on the following grounds: 1. That the learned CIR (A) was not justified to delete the addition of Rs. 12,920,136/-made u/s 111(1)(d)of the Income Tax Ordinance, 2001 on account of suppression of sales as the said amount worth of stock was sold by the taxpayer without declaring in the accounts. 2. That the learned CIR(A) was not justified to delete the addition made u/s 111(1)(d) of the Income Tax Ordinance, 2001 because the closing stocks of the raw material was understated to the tune of Rs. 12,920,136/-as the rate of the stock available during the tax year 2012. 3. That the learned CIR (A) was not justified to delete the addition of Rs. 3,325,783/-u/s 67 of the Income Tax Ordinance, 2001 on account of allocation of income between PTR and NTR. 4. That the learned CIR (A) was not justified to annulled the addition of Rs. 251,576/-under the head trade creditors pertaining to M/s AM packages and M/s new Age Chemicals (Pvt) Ltd which are more than three years old.…

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