Law: Income Tax Ordinance, 2001

Section: 2(36),21(a),61,111,122(1),131,132,133,133(1),214(c)

THIS ORDER PASSED BY: MUZAMIL AKHTAR SHABIR, JUSTICE:---.--- Through this Income Tax Reference filed under Section 133(1) of the Income Tax Ordinance, 2001 (Ordinance), the petitioner has called in question order dated 27 09.2018 (impugned order) passed by the Appellate Tribunal Inland Revenue Lahore (Appellate Tribunal) whereby the appeal filed by the respondent No. 1 (respondent) was allowed. 2 The brief facts of the case are that the respondent is running the business of departmental stores in Lahore and Rawalpindi. The respondent e filed return of income by declaring loss of Rs. 15,734,624/- for tax year 2014. The case of the respondent was selected for audit through computer ballot under Section 214-C of the Ordinance and deemed assessment of the respondent was amended under Section 122(1) of the Ordinance vide order dated 30.12.2017 and its income was determined as Rs. 880,500,469/. The respondent filed appeal where-upon the CIR (Appeals) partially remanded back the matter after slight modification. The respondent filed an appeal before the Appellate Tribunal which was allowed vide impugned order whereby certain; additions made by the assessing officer were deleted. 3. Learned counsel for the petitioner has argued that as the matter had been remanded by the CIR (Appeals), therefore, while setting aside the said order, the Appellate Tribunal should have referred the matter back to CIR (Appeals) for determination of the same instead of finally deciding the same itself. 4. From perusal of the impugned order, it is seen that the Appellate Tribunal vacated the orders of the Courts below by deleting the following additions:-   a. Addition under section 39(3) Rs. 252,369,772 b. Disallowance under section 21(a) of the Income Tax Ordinance, 2001. Rs. 5,111,393 c. Disallowance under section 21(c) of the Income Tax Ordinance, 2001. Rs. 14,705,000 d. Disallowance under section 174(2) of the Income Tax Ordinance, 2001. Rs. 13,486,773 e. Addition under section 111(1 )(a) of the Income Tax Ordinance, 2001. Rs. 7,500,000   As regards the addition of Rs. 252,369,772/- under Section 39(3) is concerned, the Appellate Tribunal while setting aside the said addition…