Law: Income Tax Ordinance, 2001

Section: 111(1)(d),120(1)(b),122(1),122(5),122(8) ,176

THIS ORDER PASSED BY: M.M. AKRAM, JUDICIAL MEMBER:---.--- The titled appeal has been filed by the appellant/taxpayer against an Appeal Order No.509 dated 11.06.2018 passed by the learned Commissioner Inland Revenue (Appeals), Peshawar for the Tax Year 2014 on the grounds as set forth in the memo of appeal. 2. Brief facts giving rise to the appeal are that the appellant is an individual, deriving income from running a Private Educational Institution. The return for the tax year 2014 was filed by declaring net income at Rs.397,030/- against gross receipts of Rs.3,221,550/-. The return so filed by the appellant was treated to be an assessment order under section 120(1)(b) of the Income Tax Ordinance, 2001 (˜the Ordinance). Subsequently, with the prior permission of the Commissioner Inland Revenue, the Assessing Officer obtained information under section 176 of the Ordinance from the Chairman, Board of Intermediate and Secondary Education (BISE), Mardan. The said authority reported total number of students studying in the appellants school were 1800, admission fee per student (Minimum = 1,000/- and Maximum = 8,000/-), monthly fee per student (Minimum = 600/- and Maximum = 2,500/-). Based on this information, the Assessing Officer computed appellants gross receipt for the tax year under consideration at Rs.41,580,000/- as against declared at Rs.3,221,550/-. The difference/suppressed receipts amounting to Rs.38,358,450/- was treated by the Assessing Officer as un-explained income of the appellant/taxpayer under section 111(1)(d) of the Ordinance and added to the declared net income at Rs.397,030/-. The appellant was provided ample opportunities by issuing show cause notices to attend the proceedings and explain his view point and furnish supporting documents in respect of his plea, if any, regarding the information obtained from BISE, Merdan. However, the appellant despite proper service of notices did not respond to the statutory notices. Ultimately the Assessing Officer passed an amended assessment order dated 29.09.2017 against the appellant in accordance with information received from BISE. The appellant felt aggrieved, filed an appeal before the learned CIR…

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