Law: Income Tax Ordinance, 2001

Section: 122, 122(9), 122(1), 131, 223

Law: Income Tax Rules, 2002

Section: 77, 111, 111(1)(C)

Law: Income Tax Ordinance, 1979

Section: 65, 66A

SUMMARY;

Appeal filed by a taxpayer against an order by the Commissioner Inland Revenue (Appeals) concerning the Tax Year 2018. The taxpayer, an individual, initially declared a net income of Rs.475,000. Later, the Assessing Officer received definite information regarding purchases from M/s Shangrilla Foods, leading to the issuance of a show cause notice under section 122(9) of the Income Tax Ordinance, 2001. The Assessing Officer was not satisfied with the taxpayer's reply and added Rs.6,287,482/- under section 111(1)(c). The Commissioner (Appeals) confirmed this treatment.

The appellant argues that the Assessing Officer should have first issued a notice under section 111 before initiating proceedings under section 122. The appellant also claims that no separate notice was given while making the addition under section 111(1)(c). The learned DR supported the orders of the lower authorities.