Law: Income Tax Ordinance, 2001

Section: 39,111,114,120,122,122(5A),Clause (86) of Part-IV of Second Schedule

ORDER NASIR MAHMUD (JUDICIAL MEMBER):---.--- The instant appeal has been filed by the taxpayer against online appellate order dated 05.11.2021 passed by the learned Commissioner Inland Revenue (Appeals-III), Lahore whereby the order passed under section 122(5A) dated 05.07.2021 by the Commissioner Inland Revenue, Zone-II, RTO, Lahore has been remanded back on an issue of investment under clause (86) of Rs.59,358,342. 2. The relevant facts of the case are that the taxpayer is an individual and derives Salary income and Share from AOP. The return of total income filed voluntarily under section 114 is treated to be assessed under section 120 on the date of Ming. Later, Internal Audit, Lahore issued an Inspection note regarding "others" inflow. The Additional Commissioner issued notice under section 22(5A) and closed the proceedings vide order dated 05,05,2021. Later, the record was called by the Commissioner and certain discrepancies were found and It was also discovered that the inspection note of the Internal audit was not properly addressed in the order under section 122(5A). Therefore, in exercise of power under section 122(5AA) a notice under section 122(5A) was issued by the Commissioner on 09,06.2021. The explanation of the taxpayer was termed unsatisfactory and through order dated 05.07.2021 the entire amount of net assets declared in the wealth Statement as on 30.06,2015 amounting to Rs.3,385,910,667 was added under section 111. Aggrieved with the treatment, the taxpayer filed first appeal and the CIR(A) vide appellate order dated 05.11.2021 has given substantial relief. However, the issue of benefit under clause (86) of Part IV of Second Schedule to the extent of Rs. 59,358,342 was remanded back. On that, the taxpayer is m second appeal on the grounds enumerated in the memo of appeal. 3.The appeal was heard on 19.07.2023. The attending AR narrated and explained the facts of the case in detail and contested the Impugned order on law points as well as on facts. On law point, it was highlighted that at page 8 of the appellate order ground of the appellate order grounds of the appellant regarding non-issuance of separate notice under section 111 is recorded…

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