Law: Sales Tax Act, 1990

Section: 2(37),11(2),73

Law: Income Tax Ordinance, 2001

Section: 153(1)(a)

ORDER CH.SHAHID IQBAL DHILLON (JUDICIAL MEMBER): This order shall dispose of the titled appeal filed by the registered person against order in Appeal No.06/2015 dated 18.03.2015 passed by the learned CIR (A-l), Lahore through which order in original No.10/2014 dated 20.10.2014 passed by the DCIR audit-16, Zone-LTU, Lahore was upheld by dismissing the first appeal of the Appellant. 2. Brief facts of the case are, that on the basis of the information received from the Directorate of Intelligence and Investigation-IR, the learned DCIR issued show cause notice to the Appellant requiring it to explain as to why input tax adjustment claimed during the period November/2009 to April/2011 against fake invoices of M/s Tanveer and Company, Lahore who had shown their purchases from M/s Azure Enterprises, Lahore might not be recovered under Section 11(2) of the Sales Tax Act, 1990 beside levy of penalty and default surcharge. The reply furnished by the Appellant was considered unsatisfactory and the impugned order in original No.10/2014 dated 20.10.2014 was passed by learned DCIR which was assailed by the Appellant before the learned CIR(A-I), Lahore through statutory first Appeal but the same was rejected, hence this appeal. 3. The learned counsel appearing on behalf of the Appellant submitted that the treatment meted out by both the authorities below is erroneous and without application of judicial mind and it is liable to be annulled. He stated that the provision of Section 2(37) of the Sales Tax Act, 1990 had wrongly been invoked in the instant case as the show cause notice did not disclose any such act attributed to the Appellant which could fall within the ambit of Section 2(37) of the Act. To invoke this Section, firstly it is absolutely necessary to allege that the registered person has done any act knowingly, dishonestly or fraudulently and without any lawful excuse which comes within the definition of tax fraud and secondly it has to be alleged on the basis of concrete evidence as in order to attract the provision of "Tax Fraud" the initial burden of proof lies on the department and not on the accused person. The learned AR stated that grounds not mentioned in the…

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