Law: Income Tax Ordinance, 2001

Section: 111,114(6A),116(3),122,122(1),122(4)

THIS ORDER PASSED BY: NADEEM DAR, ACCOUNTANT MEMBER:---.--- The second appeal is filed by the department on the following grounds: 1. That the CIR(A) was not justified to accept the revised wealth statement filed by the taxpayer in violation of section 116(3) of the I.T. Ord, 2001 which allows the revision of wealth statement by the taxpayer suo motu. The words "discovers" as used in the section 116(3) clearly connotes that's this revision is suo motu. 2. The CIR(A) failed to appreciate that wealth statement was revised after the confronting the concealed asset u/s 111 of the I.T. Ord, 2001. The revision in response to the notices u/s 122 & 111 is a confession of the said concealment on the part of the taxpayer. 3. The CIR(A) erred in accepting the revision of wealth statement after issuance of notices by the department ignoring the legal provisions of section 122/111 of the I.T. Ord, 2001 which expressly provides that "where the taxpayer's has no explanation about the nature & source of investment". 4. The CIR(A) failed to appreciate that by acceptance of such revision the entire edifice of section 122/111 comes down on the earth & section 122/111 becomes redundant. 5. The CIR(A) failed to understand the difference between suo motu revisions & revisions after the issuance of statutory notices by the department. 6. The CIR(A) order is bad and against the law whereby an admitted concealment was annulled and taxpayer was rewarded for filing inaccurate particulars of his wealth. 7. The CIR(A) did not appreciate that this concept of revising the return after the issuance of notice was also inserted in section 114(6A) of the I.T. Ord, 2001 which also strengthen the action revision of return after the issuance of notices as ultra vires. 2. Brief facts are that on being confronted with show cause notice for purchasing second hand vehicle for Rs.356,000/-, the taxpayer revised his wealth statement and declared the said vehicle but department decided that "after…

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