Law: Income Tax Ordinance, 2001

Section: 122,122(1),133,177(1),214C

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001) Sections: 122, 133, 177(1) & 214C - Reference to High Court - Audit - Amendment of assessment - Remand of case to Commissioner (Appeals) by Appellate Tribunal - Validity - FACTS Brief and essential facts leading to the present reference are that the respondent/taxpayer is an individual, deriving income from running of tyres business on wholesale as well as retail basis; that the taxpayer filed return of total income declaring net income at Rs.85,055/-; that the case was selected for audit under section 177 of the Income Tax Ordinance, 2001 (''Ordinance"), and after completion of the formalities of law, the assessment was amended under section 122(1) read with subsection (5) of the Ordinance at net income of Rs.3,230,000/-; that the order was annulled by the learned CIR (Appeals) and on second appeal by the Revenue, the learned Appellate Tribunal Inland Revenue (ATIR), Peshawar Bench, vide I.T.A. No.68 (PB) of 2013 dated 10-07-2013, remanded the case to the CIR(Appeals) with the directions to strictly confine its order to the grounds of appeals agitated in the Memo of Appeal and not to other issues which had not been agitated by the taxpayer; that on the Misc: Application filed by the taxpayer on 20-12-2013, the learned ATIR vide the impugned maintained its order of remand of the case to CIR(Appeals), however, amended its earlier decision with respect to the scope of consideration by CIR. Hence, the instant tax reference. ARGUMENTS The petitioner/department has contended that ATIR was not justified to reverse its earlier on misc application filed by the taxpayers that ATIR erred in law by following of Lahore High Court reported as 2012 PTD 1815 which has been observed to be nullity by the Supreme Court of Pakistan, that the ATIR has incorrectly interpreted the concept of audit embodied in sections 177(1) and 214C, ignoring explicit intent of legislature and against the spirit of constitution as well as pronouncements of Superior Courts on the issue. It is further contended that ATIR has erred in not considering that section 214C of Income Tax Ordinance, 2001 does not take away the independent and inherent powers of…

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