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ORDER Raana Ahmed (Accountant Member) 1. Facts of the case are that Return of Income for the tax year 2009 was not filed by the taxpayer, hence, notice u/s 114(4) of the Income Tax Ordinance, 2001 was issued by the OIR. Despite proper service of the said notice, compliance was not made. Therefore, the OIR passed provisional assessment order under section 122C dated 21.10.2010. Subsequently, the taxpayer filed Return of Income on 15.12.2010, declaring income at PKR 598,600/- and profit on debt at PKR 1,605,110/- which was deemed to be assessment order under section 120 of the Ordinance. Thereafter, the department received information that the appellant was maintaining bank accounts with ABL Daroghwala wherein following credits were appearing: Account No Credits 01-162-05-4 149,318,402 01-262-0099 16,395,559 Total 165,713,961 the Ordinance, by making addition u/s 111(1)(b) of the Ordinance. Despite repeated opportunities, the taxpayer failed to offer any explanation of nature and source of the above credits in bank account. Hence, the OIR amended the assessment in the following manner: Other revenues (as per declaration in return) PKR 1,265,000/- P & L expenses (as per declaration in return) PKR 666,000/- Income from other source as per addition u/s 111(1)(b) read with section 111(2): PKR 165,713,961/- Total income PKR 166,312,561/- Tax on above income PKR 4,157,814/- The taxpayer filed appeal, against the said order of the OIR, before the CIR (A), who vide order under section 129 dated 02.05.201 remanded the case to the OIR. The department filed instant appeal, against the said order of the CIR (A), before the ATIR vide ITA No. 1562/LB/2012, on the following grounds: 1) That the order of the Commissioner Inland Revenue, Appeals-III, Lahore is contrary to the law and against the facts and circumstances of the case. 2) That Commissioner Inland Revenue (Appeals) was not legally empowered to remand back the assessment order to the taxation officer as per section 129 of the Income Tax Ordinance, 2001 as amended by Finance Act, 2005. (Full bench judgment of ATIR in ITA No. 1078 & 1079/LB/2010 in the case of M/s New Defence Estate). 3) That the Commissioner…

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