LAHORE: The Lahore Tax Office (LTO) failed to deduct tax on transfer from construction work in progress (CWIP) to fixed assets, as no payment was made, said sources. According to details, the Commissioner Inland Revenue (Appeals -l) had deleted the demand regarding non-deduction of tax levied under the heading of transfer from CWIP to fixed assets against a chemical firm. However, the concerned Commissioner termed it unjustified and argued that the default surcharge is a mandatory levy and hence cannot be deleted and to be imposed in a scenario where tax was not deducted as per law. He further maintained that the previously passed order is bad in law and against the facts of the case, as the taxpayer was rightly charged with the tax as the taxpayer failed to furnish supporting evidence of the declared results before the Assessing Officer. However, the taxpayer company provided the appellate forum with a letter and stated that reply with evidence was duly made to the assessing officer through the said letter. Without taking into consideration the reply made the tax was levied on the taxpayer, it maintained. Additionally, copy of…