Law: Income Tax Ordinance, 2001

Section: 120(1)(b), 177, 177(1), 122, 122(9), 111, 111(1), 122(5), 177(6)

O R D E R NASIR MAHMUD (MEMBER): This appeal has been preferred by M/s. Parco Pearl Gas (Pvt.) Limited (hereinafter referred to as “the Appellant”) against the order dated 30.06.2024 passed by the learned Deputy Commissioner Inland Revenue, Large Taxpayers’ Office (hereinafter as “LTO”), Lahore. 2. The brief and relevant facts of the case, as gathered from the record, are that the Appellant is a private limited company incorporated under the provisions of the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Appellant is engaged in the business of sale of Liquefied Petroleum Gas (LPG) as well as allied equipment and accessories. It falls within the jurisdiction of the learned Commissioner Inland Revenue, Zone-V, LTO, Lahore. For Tax Year 2015, the Appellant filed its income tax return on 31.12.2015, declaring income of Rs. 1,353,957,320 and tax liability of Rs. 487,185,394, which, under section 120(1)(b) of the Income Tax Ordinance, 2001 (“the Ordinance”), was deemed to be an assessment order. 3. The learned Commissioner Inland Revenue, Audit-II, LTO, Lahore (now Commissioner Inland Revenue, Zone-V, LTO, Lahore) selected the case of the Appellant for audit of income tax affairs under section 177(1) of the Ordinance for Tax Year 2015 vide notice dated 24.04.2018. In response, the Appellant, through its letter dated 17.09.2018, filed a representation raising serious legal objections. These objections were, however, refuted by the learned Commissioner IR through subsequent notice dated 21.05.2021. 4. Meanwhile, the Deputy Commissioner Inland Revenue, LTO, Lahore (hereinafter referred to as “the Deputy Commissioner”) issued a notice dated 10.07.2018 followed by a reminder dated 26.03.2021, requiring the Appellant to submit record for the conduct of audit. In reply, the Appellant, vide letter dated 30.03.2021, requested that its legal objections raised earlier vide letter dated 17.09.2018 be decided first. However, without addressing the said objections, the Deputy Commissioner issued another notice on 13.04.2021 under section 177(6) of the Ordinance. 5. Subsequently, the Deputy Commissioner…