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IT Ord 2001: LHC stays enhancement of income/ assessment of taxpayer


ISLAMABAD: The Lahore High Court (LHC) has issued a stay order against the enhancement of income/assessment of a taxpayer by the Commissioner Inland Revenue (Appeals) under the Income Tax Ordinance 2001.

In this regard, the LHC has stayed the enhancement of income proceedings/notices issued by the Federal Board of Revenue (FBR) Commissioner Inland Revenue (Appeals) exercising powers to enhance the income/assessment, while working as an appellate authority against assessments framed by the FBR field formations.

A taxpayer has challenged the notices, issued by the FBR’s Commissioner Appeals to enhance the assessment/income, through tax lawyer Waheed Shahzad Butt in constitutional jurisdiction before the LHC, wherein, after hearing the rival parties, the LHC has restrained the Commissioner Appeals to proceed in the matter of enhancement of income in terms of Section 129 of the Income Tax Ordinance, 2001.

Petitioner states, all of sudden after lapse of 2,212 days from the date of filing of income tax and deemed order in terms of Section 120 of the Income Tax Ordinance, 2001, the learned CIR-A has issued a novel show cause notice on 20.10.2021 alleging therein that the petitioner’s income is liable to be further amended with the certain landmark observations having no effect in the eyes of law. Notices dated 20.10.2021 and 04.11.2021 in the presence of an earlier assessment order for a tax return timely filed on 30.09.2015 for Tax Year 2015, are patently illegal being without lawful jurisdiction and badly barred by time limitation prescribed under Section 122 of the Income Tax Ordinance, 2001.

Copyright Business Recorder, 2021

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