Law: Income Tax Ordinance, 2001

Section: 120,121,122,122C,182,182(1)

THIS JUDGMENT DELIVERED BY: MIAN ABDUL BASIT, JUDICIAL MEMBER:---.--- These income tax appeals have been filed by the department against a consolidated order(s) passed in Appeals Nos. 1046/2013/114, No. 1048/2013/118, 1050/2013/116 and No. 1051/2013/117 dated 26.08.2013 by CIR (Appeals-II), Islamabad. The department contested the appeals on following common ground: - That the learned CIR (A-II) has wrongly annulled the penalty order under section 182(1) of the Income Tax Ordinance, 2001 by misinterpreting the applicability of explanation added in 2011 to section 182(1) (Sr.No.1) wherein it was made clear that the expression tax payable means tax chargeable on the taxable income on the basis of assessment made or treated to have been made under section 120, 121, 122 or 122C. The explanation only made clear what was already stated in law and it has the effect since the very inception of section 182(1) (S.No.1) of Income Tax Ordinance, 2001 and the Commissioner (A-II) was not justified in unlawfully annulling the penalty order. 2. Briefly stated facts as per record are that respondent / taxpayer is a private limited company derives income from providing marketing and related services to its clients. As per appeal record the taxpayer/respondent filed its income tax returns for all the tax years under appeal i.e. 2008 to 2011 in the RTO, Islamabad. It transpires from record that Assessing Officer (ACIR) examined and opined that the company has failed to submit the returns of total / statement of final taxations for the tax years 2008 to 2011 on their due dates as the company filed its income tax returns as under: Tax Years Return filing date Number of days late by 2008 24.01-2013 1484 2009 24.01.2013 1124 2010 26.01.2013 760 2011 30.01.2013 395 Accordingly the taxpayer/respondent was confronted through a show-cause notice under section 182 of the Income Tax Ordinance, 2001 (The Ordinance, 2001) for imposition of penalty for late filing of income tax returns. In response, respondent/taxpayer remained un-complied with. Hence, department has imposed penalties under section 182 for all the tax years as under:- Tax Years Penalty Imposed under section 182 2008 Rs.79,926/-…

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