Law: Income Tax Ordinance, 2001

Section: 111,111(1),120(1),122(5A),122(9)

Income Tax Ordinance (XLIX of 2001)---S. 111--Unexplained income or assets--Separate notice, non-issuance of--Effect--Department observed that the appellant had claimed exemption to the agricultural income but had not attached the proof of payment of agricultural income as required by proviso to S. 111(1) of Income Tax Ordinance, 2001--Deemed assessments were declared to be erroneous in so far as prejudicial to the revenue--Show cause notice under S. 122(9) read with S. 122(5A) of Income Tax Ordinance, 2001, was issued--/Deemed assessments were amended under S.122(5A) of Income Tax Ordinance, 2001--Appeal filed before Commissioner (Appeals) was rejected--Contention of appellant was that no separate notice under S. 111 of Income Tax Ordinance, 2001, was issued--Validity--Non-issuance of separate notice under S. 111 had caused prejudice to the taxpayer as substantial compliance of the provision of law was not made--Law had mandated issuance of separate notice/explanation within the contemplation of S. 111, therefore, the same could not be made redundant--Orders of authorities below were annulled--Appeals of the taxpayer were allowed. 2012 PTD 964 ref. Commissioner Inland Revenue v. Faqir Hussain and another 2019 PTD 1828 fol. ORDER: Dr. SHAHID SIDDIQ, ACCOUNTANT MEMBER:---.--- Titled appeals has been preferred at the instance of Appellant / taxpayer directed against the Separate Appellate Orders Nos.564 and 565 even dated 13.11.2020, passed by the learned CIR(A), Faisalabad, pertaining to tax years 2016 and 2017. 2. Brief facts, of the case are that the taxpayer filed his returns of income for tax years 2016 and 2017 declaring income of Rs.4,958,741/- and Rs. 10,119,007/- respectively. The declared results constituted deemed assessment order under section 120(1) of the Income Tax Ordinance, 2001. The ACIR examined the assessment record and found that the taxpayer declared agricultural incomes for years under consideration and claimed as exempt from tax. As per proviso to section 111(1) of the Income Tax Ordinance, 2001, the exemption to the agricultural income is available only to the extent the agricultural income tax is paid to the relevant authorities and 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