Law: Income Tax Ordinance, 2001

Section: 21(l),39(3),28(i),24(5),34(5),111(1)(d), 122(4),122(5),122(9),153,172(2),174(2),1 77,214C,120

Law: Income Tax Ordinance, 2001

Section: 21(l),39(3),28(i),24(5),34(5),111(1)(d), 122(4),122(5),122(9),153,172(2),174(2),1 77,214C,120

ORDER The Order was passed by Jawaid Masood Tahir Bhatti, Chairman: - These are cross appeals preferred on behalf of Taxpayer and Revenue relevant to the Tax Year 2012, directed against order dated 30.06.2014, passed by the learned CIR (A), Zone-II, Lahore. 2. Briefly stated, the relevant facts are that the taxpayer in this case is a private limited company engaged in the business of manufacturing of artificial leather. Return for the year was filed declaring income at Rs.27,068,071/- which was deemed to be treated as assessment in terms of section 120 of the Income Tax Ordinance, 2001. Subsequently, the case of the taxpayer was selected for audit in terms of section 177 of the Income Tax Ordinance, 2001, by the Federal Board of Revenue in exercise of powers conferred u/s 214C of the Ordinance. An intimation letter for selection of case for audit was issued by the concerned Commissioner and later on statutory notices were issued by the concerned DCIR. After seeking explanation/documents from the taxpayer, the assessing authority come to the conclusion that the deemed assessment completed needs modification in terms of section 122(4)/(5). Accordingly, a show cause notice u/s 122(9) was issued to the taxpayer to make amendment of assessment by making certain additions as confronted in the notice. However, the taxpayer made no response to the show cause notice and subsequent reminder notice. Accordingly, the assessing authority proceeded exparte against the taxpayer and amended the assessment u/s 122 (4)/(5) by making following additions towards income for the year: - i. Addition u/s 111(1)(d) suppress in sales 10,465,627 ii. Addition u/s 111(1)(d) suppression in production 15,766,174 iii. Addition u/s 67 allocation of income 51,169,311 iv. Addition u/s 111(1)(b) imports 68,938,492 v. Addition u/s 111(1)(b) Local purchases 137,765,244 vi. Addition u/s 172(2) Local purchases 9,410,873 vii. Addition u/s 39(3) Loan from directors 100,000,000 viii. Addition 21 Lease finance charges 6,729,332 ix. Addition u/s 34(5) Trade Creditors 21,328,199 x. Addition 21(i) cash expenses 36,461,279 xi. Addition u/s 28(1) financial expenses 2,037,543 xii. Addition u/s 21(c)…

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