Law: Income Tax Ordinance, 2001

Section: 111(1)(b),120,120(1),122(1),122(5),122(9 )

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001) ---- Sections: 111(1)(b), 122(1), 122(5) & 122(9) - Unexplained income or assets - Amendment of assessments - Taxpayer found maintaining bank A/C and on examination of Bank statement it was observed that bank transactions/Credit entries did not match with declared results - Show Cause Notice - Reply to show cause notice rejected and already completed assessments in terms of section 120 were amended u/s 122(1) and 122(5) - Appeal before CIT(A) failed and orders passed by adjudication officer for years 2006 & 2007 maintained - It is contended by AR that income tax return for assessment year 2006 was filed on 30-09-2006 and same was treated as assessment order in terms of section 120, whereas, impugned assessment order has been passed on 28-06-2012, which is barred by limitation of five years and same shall only be amended within five years of filing return, i.e. up till 29-09-2011 - For year 2007, notice u/s 122(9) was issued on 20-06-2012, whereby intention was shown to add reasonable amount as income from other sources u/s 111(1)(b) - Reply to Show Cause Notice given by taxpayer was rejected being unsatisfactory - AR contended before Tribunal that assessment framed is beyond scope of Show Cause Notice for reasons that in Show Cause Notice taxpayer was confronted for making addition, whereas in assessment order he has made addition which was never confronted to taxpayer - DR Supported authorities below and urged for maintenance of same - Validity - Through Show Cause Notice dated 20-06-2012 u/s 122(9) appellant was confronted regarding straight addition of Rs. 30,951,201/- u/s 111(1)(b) as un-explained income, but at time of passing of assessment order assessing officer took lenient view and treated said amount as sales and applied G.P @ 5% thereon and allowed expenses on estimate basis, resulting in addition of Rs. 1,097,000/ only. The said treatment adopted although not confronted to taxpayer, but same was beneficial to taxpayer and it could not be said that above addition of Rs. 1,097,000/ was beyond the scope of Show Cause Notice u/s 122(9), whereby addition of Rs. 30,951,200/ was proposed. The assessing…

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