Law: Income Tax Ordinance, 2001

Section: 2(36),21(c),21(l),113,121(1)(d),174(2),1 77,177(1),177(1)(d),214C,92Part-I of Second Schedule

THIS ORDER PASSED BY: NAZIR AHMAD, CHAIRMAN:---.--- The above titled appeal on the behest of taxpayer is preferred against the impugned order dated 01.04.2016 passed by the learned CIR(Appeals), Peshawar on the following grounds:- "That appellate order passed by the CIR (A) confirming the ex- parte order u/s 121(1)(d) of the ACIR is injudicious, based on misconception of relevant provisions of law, biased, capricious and patently illegal. That selection of case for audit u/s 177 by the Commissioner for Tax Year 2013 prior to the selection by the FBR u/s 214C is illegal, Ref: 2012 PTD 1818 (LHC). That even otherwise case was selected by the Commissioner for audit only on a flimsy ground that "Appellant declared net sales at Rs.273,576,000/- in Tax Year 2013 while the same was NIL as per return in Tax Year 2012" on the other hand, appellant declared receipts of its educational institution instead of sales and no other cogent reason was advanced. Accordingly selection of case by the CIR in perfunctory manner is per se illegal. That it was incorrectly observed by the CIR(A) that explanation added through Finance Act, 2013 is applicable to Tax Year 2013 whereas it is applicable to Tax Year 2014 onward. The adequate opportunity was not provided by the ACIR to prove the genuineness of expenses claimed and entire expenses of the institute were disallowed on the basis of her own whim, surmises and conjectures. The appellant claimed exemption under clause 92 Part-I of second schedule to the Income Tax Ordinance, 2001 in accordance with case history which was neither considered nor determined by the ACIR. vii. That disallowance of salary expense u/s 174(2)/21c at Rs.100,775,6387-15 incorrect, unjust and based on surmises and conjectures. viii. That again addition u/s 21c at Rs.51,739,362/- for non withholding of tax at source is incorrect, arbitrary and based on surmises and conjectures. ix. That travelling expenses disallowed u/s 174(2)/21c & 21(l) at Rs.5,098,000/- are incorrect, unjust and arbitrary. x. That repair and maintenance expanses disallowed u/s 174(2) 21c and 21(l) are also arbitrary. xi. That likewise other Misc expanses disallowed u/s 174(2)/21c and…

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