Section 122B of Income Tax Ordinance, 2001 has provided that the Chief Commissioner has the authority to revise assessment order.
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Commissioner empowered to call taxpayer’s record
Section 122A of the Income Tax Ordinance, 2001 tells that the commissioner can call for any taxpayer’s record.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 122A of Income Tax Ordinance, 2001:
122A. Revision by the Commissioner.—(1) The Commissioner may, call for the record of any proceeding under this Ordinance or under the repealed Ordinance in which an order has been passed by any Officer of Inland Revenue other than the Commissioner (Appeals).
(2) Subject to sub-section (3), where, after making such inquiry as is necessary, Commissioner considers that the order requires revision, the Commissioner may make such revision to the order as the Commissioner deems fit.
(3) An order under sub-section (2) shall not be prejudicial to the person to whom the order relates.
(4) The Commissioner shall not revise any order under sub-section (2) if—
(a) an appeal against the order lies to the Commissioner (Appeals) or to the Appellate Tribunal, the time within which such appeal may be made has not expired; or
(b) the order is pending in appeal before the Commissioner (Appeals) or has been made the subject of an appeal to the Appellate Tribunal.
(5) If any order is remanded back to any lower authority by the Commissioner for modification, alteration, implementation of directions or de novo proceedings, the order giving effect to the directions of the Commissioner shall be issued within one hundred and twenty days.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Karachi Customs Intelligence to auction cars on Sept 10
KARACHI: Directorate of Customs Intelligence and Investigation, Karachi has announced the auction of motor cars to be held on September 10, 2021.
Following motor cars will be presented for the auction:
01. Mercedes Benz E-230 Car, Reg. No. AAJ-106, Model-1997 Chassis No. WDB2100372A189414 Color Grey 2294cc
02. BMW 7 Series E66 745Li Car, Reg. No. BCP-523, Model-2002 Chassis No. WBAGN62000DE55455, H.P. 4400cc Color White
03. Toyota Mark X Car, Reg.No.AMQ-020, Model-2006 Chassis No.GRX121-3001124, H.P.3000CC, Color Pearl White
04. Toyota Marks-X Car Reg No.ASP-663 Model 2005 Chassis No.GRX121-1005188 color pearl white H.P 2994 CC
05. Honda Civic Car Reg No.AKY-342 Model 2004 Chassis No.JHMES56804S201499 color Black H.P 1590 CC
06. Toyota Marks-X Car Reg No.BBF-001 Model 2005 Chassis No.GRX120-0045540 color pearl white H.P 2499 CC
07. Toyota Marks-X Car Reg No.ARN-690 Model 2005 Chassis No.GRX120-0021588 color Silver H.P 2500 CC
08. Toyota Surf Jeep Reg. No. BG-0235 Model 2000 Chassis No.VZN185-9047191 color White H.P 3378 CC
09. Toyota Hilux Surf Reg. No. ABC-600 Model 1997 Chassis No.KZN185-9022690 color Silver 2982 CC
10. Toyota Prado Jeep, Reg No. WAA-225, Model 1996 Chassis No.VZJ95-0001689 Color Blue H.P 3378 CC
11. Toyota Mark-X Car Reg No. LED-14-7246, Model 2005, Chassis No.GRX121-1005846 color Pearl White H.P 3000 CC
12. Toyota Corolla X Reg No. AGS-666, Model 2001, Chassis No. NZE124-3003485 Color White H.P 1500 CC
13. Suzuki Swift Car Reg No. BCF-996, Chassis No.ZC11S-166252, 1300CC , Model 2006, Color Silver
14. Toyota Mark-X Car having dummy/fake Reg plate / Mark ASY-789 Karachi, Chassis No. GRX120-0067707, 2499cc Model 2006, Color Pearl White
15. Toyota Surf Jeep having dummy/fake Reg. plate / Mark BF-8481, Chassis No. RZN185-0045234, 2700cc Model 2001, Color Pearl White
16. Toyota Premio Car having dummy/fake registration plate / Mark ARL-786, Chassis No. ZZT240-5014560, Engine No.INZ-A477200, 1794cc Model 2003, Color Pearl White
17. Toyota Prado Jeep having dummy/fake registration plate / Mark GS-0864, Chassis No. KZJ95-0061884, 2982cc Model 1997
18. Honda Civic Reborn (Hybrid) Car, without Registration plate/Mark, ASP-765 Karachi Chassis No.FD3-1005399, Engine No.DAA-FD3, 1300 CC Model 2006, Color Silver
19. Toyota Surf Jeep having dummy/fake Reg plate / Mark BC-5511, Chassis No. VZN185-0357462, Model 2001, Color Golden
20. BMW-(545i Series) Car, having dummy/fake registration plate / Mark without Registration plate/Mark, Chassis No.WBANB32070B360916 ,Model 2004, Color Black,
21. Suzuki Swift Car having dummy/fake Reg plate / Mark AWA-248, Chassis No.ZCI 1S-123498, Model 2005, Color Black
22. Toyota Vitz Car having dummy/fake Reg. plate / Mark BDA-756, Chassis No. KSP90-2067642, Model 2008, 1000 cc Color White,
23. Toyota Mark-X Car having dummy/fake registration plate / Mark AZU-931, Chassis No. GRX120-0040846, Model 2005, 2500 cc Color White,
24. Honda Accord Car, having dummy/fake registration plate / Mark Reg. No. AXY-881, Chassis No. CL7-3006381, Model-2003, Color Silver
25. Old & Used Toyota Land Cruiser Jeep Bearing Registration No. 493301 (Bahrain), Chassis No. JTMDU09J3E5087856, Engine No. 1GRB000618, Model 2014, 4000CC, Color Pearl White
26. Old & Used Toyota X Corolla Bearing Registration No. AWV-409 (Karachi), Chassis No. ZZE122-3001965, 1500CC, Model 2000, Color Silver
27. Old & Used Toyota Mark-X Registration No. ARV-871 (Karachi), Chassis No. GRX120-0045784, 2500CC, Model 2005, Color Pearl White
28. Old & Used Toyota Corolla Car Bearing Registration No. AAM-180 (Quetta), Chassis No. AE100-002618, Model 1992
29. Old & Used Suzuki Swift Car having Dummy / Fake Registration Plate / Mark AUJ-037 (Karachi), Chassis No.ZC11S-166072 1300CC, Model 2006 Color Silver
30. Old & Used Toyota Hilux Surf Jeep having Dummy / Fake Registration Plate / Mark E-1412, Chassis No.LN130-7023698 Engine No. 2L-3254319, Model 1992, Color Black
31. Old & Used Toyota Land Cruiser Lexus LX-470 Jeep bearing Registration Plate / Mark. CC-52-33 (unregistered) Chassis No.UZJ100-0016994, Engine No.2UZ-0026202, Color Rose Mist, Model 1999, 4700CC
32. Old & Used Toyota Land Cruiser Jeep (Cygnus)having Registration Plate / Mark AJKF-8208 Chassis No.UZJ100-0160781, 4663CC.Model 2006, Color Pearl White
33. Old & Used Toyota Mark-X Car Regd No.AAK-405, Chassis No.GRX121-1005389, 3000CC, Model 2005 Color Pearl White
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Saigols of KTML disclose availing amnesty scheme
KARACHI: Kohinoor Textile Mills Limited (KTML) on Thursday shared information disclosing that its senior management has avail an amnesty scheme of undeclared foreign assets.
A communication sent to Pakistan Stock Exchange (PSX) stated that the following shareholders of KTML informed that they had made to the Federal Board of Revenue (FBR) declarations of assets acquired/held outside Pakistan in July 2018 under the Foreign Assets (Declaration and Repatriation) Act, 2018 and intimated about their beneficial ownership of KTML.
Following is shareholding detail prior to the declaration by virtue of the Declaration Act:
01. Taufique Sayeed Saigol, Chief Executive Officer/Director, shareholding in KTML is 43,425,059, the percentage of paid up capital is 14.51 per cent.
02. Mrs. Shehla Tariq Saigol, substantial shareholder, shareholding in KTML is 30,377,143, the percentage of paid-up capital is 10.51 per cent.
Further, the above shareholders of KTML are indirectly ultimate beneficial owners in the proportion of 50 per cent each in the following two foreign companies which are also substantial shareholders of KTML as under:
01. Mercury Management Inc., BVI (MMI), substantial shareholder, shareholding in KTML is 73,390,890, percentage of paid-up capital is 24.52 per cent.
02. Hutton Properties Limited, BVI (HPL), substantial shareholder, shareholding in KTML is 49,639,992, percentage of paid-up capital is 16.59 per cent.
Accordingly, it is notified that, pursuant to the Declarations made under the Declaration Act, their aggregate shareholding in KTML is as under:
The shareholding of Taufique Sayeed Saigol, Chief Executive Officer / Director in KTML after including assets declared under amnesty scheme increased to 106,940,503 or percentage of share capital in KTML increased to 35.06 per cent.
Similarly, the shareholding of Mrs. Shehla Tariq saigol, a substantial shareholder in KTML after including assets declared under the amnesty scheme increased to 91,892,587 or percentage of share capita in KTML increased to 30.70 per cent.
The communication sent to the PSX, the company said: “In accordance with the highest legal ethical standards and acting out of abundant caution in a wholly precautionary way, the above-named shareholders have declared their proportionate shares of indirect shareholding ownership held in KTML through MMI and HPL managed by Saim Family Trust, a Settler Reserved Discretionary Trust.”
Assets held and controlled by this Discretionary Trust would only be available to the beneficiaries at the discretion of the trustees, whenever distributed, it added.
“It is clearly stated that such assets are not yet distributed by the Trustees.”
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Commissioner can amend assessment order
Section 122 of the Income Tax Ordinance, 2001 has empowered a commissioner to make amendment in an assessment order.
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Powers to make best judgment in assessment cases
Section 121 of the Income Tax Ordinance, 2001 has empowered the commissioner to pass best judgment in assessment case
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 121 of Income Tax Ordinance, 2001:
121. Best judgement assessment.— (1) Where a person fails to —
(ab) furnish return of income in response to notice under sub- section (3) or sub-section (4) of section 114; or”;
(b) furnish a return as required under section 143 or section 144; or
(c) furnish the statement as required under section 116; or
(d) produce before the Commissioner, or a special audit panel appointed under sub-section (11) of section 177 or any person employed by a firm of chartered accountants or a firm of cost and management accountants under section 177, accounts, documents and records required to be maintained under section 174, or any other relevant document or evidence that may be required by him for the purpose of making assessment of income and determination of tax due thereon,
the Commissioner may, based on any available information or material and to the best of his judgement, make an assessment of the taxable income or income of the person and the tax due thereon and the assessment, if any, treated to have
been made on the basis of return or revised return filed by the taxpayer shall be of no legal effect.
(2) As soon as possible after making an assessment under this section, the Commissioner shall issue the assessment order to the taxpayer stating—
(a) the taxable income;
(b) the amount of tax due;
(c) the amount of tax paid, if any; and
(d) the time, place and manner of appealing the assessment order.
(3) An assessment order under this section shall only be issued within five years after the end of the tax year or the income year to which it relates:
Provided that where notice for furnishing a return of income under sub-section (4) of section 114 is issued in respect of one or more of the last ten completed tax years in pursuance of proviso to sub-section (5) of section 114 an assessment order under this section shall only be issued within two years from the end of tax year in which such notice is issued.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)
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Proceeding limitations under asset declaration scheme
In a move to streamline the process of disclosing undisclosed assets, expenditure, and sales, Section 120B of the Income Tax Ordinance, 2001 has outlined specific limitations on proceedings under the Assets Declaration Act, 2019.
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FTO declares Car Amnesty Scheme illegal
ISLAMABAD: Federal Tax Ombudsman (FTO) has declared an amnesty scheme for customs clearance of stolen imported cars without legal action.
Customs authorities’ decision about clearance of stolen imported cars under Transfer of Residence, Baggage Scheme or Gift Scheme upon payment of redemption fine and taxes without following any legal provision has been decleared illegal by the Federal Tax Ombudsman.
In an own motion investigation, the FTO Islamabad found that the decision taken in Customs conference held at the then CBR (FBR) on 02.08.2006 was illegal.
The FTO’s investigation committee also underlined that without following due legal procedures such decisions will promote illegal import of stolen vehicles and facilitate international criminal activities.
In this connection, FTO issued notices to Federal Board of Revenue (FBR). The FBR submitted report that Customs collectorates in Sialkot and Peshawar had cleared six and three such stolen imported vehicles in 2007 and 2013-2014 respectively.
The FTO also recommended FBR to direct all Collectorates of Customs and other concerned authorities to stop these illegal practices forthwith.
The Customs authorities were also directed that the stolen imported vehicles either should have been returned to authorities of the country from where vehicles were stolen after receiving occurring expenses or these vehicles should have been confiscated and disposed of through public auction.
The committee also recommended FBR to direct MCC Sialkot to seize identified six vehicles and take appropriate legal action against importers involved in such illegal businesses.
The FTO ordered a report from the competent authorities to be submitted within 45 days. Earlier, the FTO took the Own Motion in connection of the decision taken in Customs Conference held at the then CBR (FBR) on 02.08.2006, in which it was decided that the Collectorates may clear stolen imported vehicles after imposition of 30 percent redemption fine under the Provision of Customs Act 1969 while no action should be taken unless recognized agency of the foreign country approaches government of Pakistan.
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FBR officers found non-compliant to asset declaration
The Federal Board of Revenue (FBR) has raised concerns over a significant number of officers in BS-19 and BS-20 who have been found non-compliant with the mandatory filing of asset declarations.
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Assessment of declared income tax return
Section 120 of the Income Tax Ordinance, 2001 explains the assessment on the taxpayer declaring the complete income tax return.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following is the text of Section 120 of Income Tax Ordinance, 2001:
120. Assessments.—(1) Where a taxpayer has furnished a complete return of income (other than a revised return under sub-section (6) of section 114) for a tax year ending on or after the 1st day of July, 2002,—
(a) the Commissioner shall be taken to have made an assessment of taxable income for that tax year, and the tax due thereon; and
(b) the return shall be taken for all purposes of this Ordinance to be an assessment order issued to the taxpayer by the Commissioner on the day the return was furnished:
Provided that until the date specified under the fourth proviso to sub-section (2A) is notified, this subsection shall be in force as if sub-section (2A) is not in operation:
Provided further that once the date under the fourth proviso to sub-section (2A) is notified, clauses (a) and (b) shall only apply when the provisions of sub-section (2A), if invoked, are first complied with:
Provided further once compliance is made under the second proviso,—
(i) the adjusted amount under sub-section (2A) shall be construed to be the tax payable and due under clause (a); and
(ii) the date of the compliance under sub-section (2A) shall be the date for the purposes of clause (b).
(1A) Notwithstanding the provisions of sub-section (1), the Commissioner may conduct audit of the income tax affairs of a person under section 177 and all the provisions of that section shall apply accordingly.
(2) A return of income shall be taken to be complete if it is in accordance with the provisions of sub-section (2) of section 114.
(2A) A return of income furnished under sub-section (2) of section 114 shall be processed through automated system to arrive at correct amounts of total income, taxable income and tax payable by making adjustments for-
(i) any arithmetical error in the return;
(ii) any incorrect claim, if such incorrect claim is apparent from any information in the return;
(iii) disallowance of any loss, deductible allowance or tax credit under Parts VIII, IX and X respectively of Chapter III; and
(iv) disallowance of carry forward of any loss under clause (b) of sub-section (I)of section 182A:
Provided that no such adjustments shall be made unless a system generated notice is given to the taxpayer specifying the adjustments intended to be made:
Provided further that the response received from the taxpayer, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such notice, adjustments shall be made.
Provided also that where no such adjustments have been made within six month of filing of return, the amounts specified in the return as declared by the taxpayer shall be deemed to have been taken as adjusted amounts on the day the return was filed and the taxpayer shall be intimated automatically through Iris:
Provided also that the provisions of this sub-section shall apply from the date notified by the Federal Board of Revenue in the official Gazette.
(3) Where the return of income furnished is not complete, the Commissioner shall issue a notice to the taxpayer informing him of the deficiencies (other than incorrect amount of tax payable on taxable income, as specified in the return, or short payment of tax payable) and directing him to provide such information, particulars, statement or documents by such date specified in the notice.
(4) Where a taxpayer fails to fully comply, by the due date, with the requirements of the notice under sub-section (3), the return furnished shall be treated as an invalid return as if it had not been furnished.
(5) Where, in response to a notice under sub-section (3), the taxpayer has, by the due date, fully complied with the requirements of the notice, the return furnished shall be treated to be complete on the day it was furnished and the provisions of sub-section (1) shall apply accordingly.
(6) No notice under sub-section (3) shall be issued after the expiry of one hundred and eighty days from the end of the financial year in which return was furnished, and the provisions of sub-section (1) shall apply accordingly.
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(a) “arithmetical error” includes any wrong or incorrect calculation of tax payable including any minimum or final tax payable.
(b) “an incorrect claim apparent from any information in the return” shall mean a claim, on the basis of an entry, in the return,-
(i) of an item, which is inconsistent with another entry of the same or some other item in such return;
(ii) regarding any tax payment which is not verified from the collection system; or
(iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction.
(Disclaimer: The text of the above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)