Law: Income Tax Ordinance, 2001

Section: 129

  ORDER M. M. AKRAM (Judicial Member): The instant appeal has been filed by the appellant-taxpayer against Order-in-Appeal No. 117/2019 dated November 19, 2019, passed by the learned Commissioner Inland Revenue (Appeals-I), Islamabad, under section 129 of the Income Tax Ordinance, 2001 (“the Ordinance”), pertaining to Tax Year 2018, on the grounds set forth in the memorandum of appeal. 2.        Briefly stated, the appellant-taxpayer filed a return of income for the tax year 2018, declaring income from property at Rs.109,500 and Pension at Rs.1,705,428, along with a wealth statement as on 30.06.2018 declaring total assets therein at Rs.11,420,576/-, and the deemed assessment stood finalized under section 120(1) of the Ordinance as per the return. Later on, information was received from external sources that the taxpayer had immovable property in Dubai (UAE) and as per his tax record, the said property, i.e. Apartment No.401, Building No.04, Al Arta Community (LLC) in Dubai UAE, its rental income and Capital Gains earned on disposal of said apartment was not declared in his tax returns for the relevant tax years. Accordingly, a notice under section 176 was issued requiring the taxpayer to furnish the information/documents related to the sources of investment, rental income and capital gain from the disposal of the said property during the year 2008. In response, the AR of the appellant attended the proceedings and submitted the relevant documents related to the sources of investment, rental income and sale proceeds of the immovable property in question. The assessing officer, after having considered the relevant documents, accepted the explanation on the issue of sources of investment and capital gain. However, the undeclared rental income earned during 2005 to 2008, amounting to Rs.4,222,570/-, was added to the taxpayer’s income under section 111(1)(d) read with section 111(2)(ii) of the Ordinance, 2001. 3.        Feeling aggrieved, the taxpayer preferred an appeal before the learned Commissioner Inland Revenue (Appeals-I), who, vide Order-in-Appeal dated November 19,…