Law: Income Tax Ordinance, 1979

Section: 80C

Income Tax Ordinance (XXXI of 1979)----S. 80-C---C.B.R. Circular No. 12 of 1991, dated 30-6-1991---Tax on importer---Tax paid by assessee at import stage constitutes a final discharge of his tax liability and no further tax is required to be paid by such an assessee--¬Persons who do not have any other income except from sale of imported goods are not even required to file any income-tax return. ORDER This appeal has been riled on behalf of M/s. Rehmani Fontorme Private Limited (hereinafter also referred to as the assessee) challenging the order of learned CIT(A) Zone-III Lahore vide A.O. No.64/CC-20, dated 24-4-1993. 2. The assessee in this case is Private Limited Company earning its income from purchase and sale of flavours. For the assessment year under consideration the trading results declared by the assessee as compared to earlier years are as under:--- 1991-92 1992-93 Sales declared Rs.16, 39,534 Rs.5, 37,011 G.P. Rate 16.97% 15.64% The above trading account for the assessment year 1992-93 reflects only a part of transaction of the assessee because the assessee in this case has purchased goods locally as well as has imported the goods. On the imported goods the assessee has paid tax under section 80-C, hence, sales relating to imports are not reflected in the above trading account. The I.T.O. did not accept the trading results on the ground that sales made by the assessee were not verifiable. The I.T.O. also observed that purchases of the assessee are also unverifiable. Hence, he estimated the sales at Rs.10,00,000 and applied G.P. rate at 18%. The I.T:O also made additions out of profit and loss account expenses and worked out the income at Rs.31,162 to which I.T.O. added the presumptive income at Rs.12,196. This total income was worked out by the I.T.O. at Rs.43,358. 3. Aggrieved by this treatment the assessee went in appeal and agitated before the learned CIT(A) excessiveness of estimate of sales, G.P. rate and disallowance out of profit and loss account expenses. The assessee also agitated that ITO was not justified in adding presumptive income under section 80-C to the other income of the assessee. The learned CIT(A) rejected the appeal of the…

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