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ORDER CH. SHAHID IQBAL DHILLON (Judicial Member): The subject appeal pertaining to tax year 2009, has been preferred on behalf of Revenue, calling in question the impugned order dated 13.09.2012, passed by the learned CIR(A). Lahore. The appellant/department contested the order of the learned CIR(A) on the following grounds of appeal: - i. That the case falls under the jurisdiction of CIR(A-II) Lahore, therefore, the learned CIR(A)-IV) Lahore was not justified to decide the same vide order dated 13 09.2012. ii. Without prejudice to the above grounds, the learned CIR (A) was not justified to cancel the order passed under section 121(1)(d) of the Income Tax Ordinance, 2001 because sub section (d) of sub section (1) of section 121 of the Income Tax Ordinance, 2001 addresses a situation where taxpayer fails to produce documents called for u/s 177 of the Income Tax Ordinance, 2001. Injunction used by law is or between 121(1)(d) and 121(1)(b) which addresses a situation where return is not filed. 2. Briefly stated, the relevant facts for disposal of present appeal are that the taxpayer in the case is a private limited company engaged in the business of manufacturing, printing and selling of plastic bags and sheets etc. Return for the tax year 2009 was filed declaring loss of Rs.24,321,604/-. The case of the taxpayer was selected for audit in terms of section 177(1) of the Income Tax Ordinance, 2001. Audit proceedings were initiated through issuance of certain statutory notices but, allegedly, the taxpayer-company failed to respond these notices issued by the assessing authority Consequently, the assessing authority proceeded ex-parte against the taxpayer and passed a best judgment order through an order passed u/s 121(1) (d) read with section 177(1) of the Ordinance. As a consequence of said order, income for the year was computed at Rs.35,718,747/- by making certain additions as against declared loss of Rs.24,321,104/-. 3. Being aggrieved, the taxpayer preferred appeal before the CIR(A) and assailed the treatment meted out at assessment stage. The learned CIR(A) vide impugned order cancelled the order passed by the assessing authority after observing as under. - "8…

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