Law: Income Tax Ordinance, 2001

Section: 111(1)(b),120(1),120(1)(b),122(1),22(3)( b),122(5),122(5A),210(1A),218(1)(d)

THIS ORDER PASSED BY: M.M. AKRAM, JUDICIAL MEMBER:---.--- The titled appeal has been filed by the Appellant/Taxpayer against an Order No. 1958 dated 24.05.2019 passed by the learned CIR (Appeals), Sargodha for the Tax Year 2017 on the grounds as set forth in the memo of appeal. Subsequently, the appellant also filed the additional grounds in the titled appeal. 2. Briefly facts culled out from the record are that the taxpayer is an individual who e- filed his income tax return for the Tax Year 2017 by declaring total income at Rs. 2,450,000/-. The return so s-e-filed on 02.08.2018 by the appellant was treated to be an assessment order under section 120(1)(b) of the Income Tax Ordinance, 2001 ("the Ordinance"). However, perusal of the original return so e-filed for the tax year under consideration reflected the following discrepancies floating on the surface of record and which have rendered the "deemed assessment order u/s 120(1)" erroneous in so far as it is prejudicial to the interest of revenue thereby necessitating amendment thereof under section 122(5A) of the Ordinance:- "(A) As per e-filed return for the year, the appellant has declared agricultural income at Rs.2,450,000/-. Moreover, it is further observed that the appellant has utilized this agricultural income for the purposes of reconciliation of accretion in his total wealth for the year as on 30.06.2017. However, as per our record, the appellant has not paid provincial agriculture income tax thereon. Thus, the declared agricultural income for the year is required to be treated as his un-explained income/investment in view of proviso inserted to clause (b) of sub-section (1) of section 111 of the Ordinance which states: - "[Provided that where a taxpayer explains the nature and source of the amount credited or the investment made, money or valuable article owned or funds from which the expenditure was made, by way of agricultural income, such explanation shall be accepted to the extent of agricultural income worked back on the basis of agricultural income tax paid under the relevant provincial law.]" Viewed in the above context, the deemed assessment order as finalized under section 120(1) of 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