072221_20160923_190121.docx - that it should have been find...

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Unformatted text preview: /\ that it should have been find out but being so minor as compared to total sales it should rather be ignored. You are well aware that all the soles are to known and verifiable parties which are properly reflected in the sales tax return showing the NTN and their particulars and payments ore further received through normal banking channels, thus there is no question of u nverifi ability of the sales. This amount of Rs. 1,395 ,404/- is only a reconciling diff erence and not suppressed UNIgLJo i - E: sales which unfortunately remained un-reconciled." The reply of the taxpayer has been examined. It is evident from plain reading of the taxpayer's 2.3 reply that it is conceding to the differenc e in the declaration of value of sales amounting to Rs. 1,395,404/-. However, taxpayer's plea that being a nominal amount it arise, no law pertains it to be over looked. should be ignored, cannot be accepted. No matter how small the discrepancy might The amount of Rs. 1 3.1 1,3 95,404/- is 1 1 added to the total income of the taxpayer u (1)(b) of the Income Tax Ordinance, 20 /s. 01 being suppressed sales. 3LONG TERM INVESTMENT — Rs.8 90• 000/-, In its balance sheet, the taxpayer had declared long term investment amounting to Rs. 8 9 , 00,000/-, as against the previous year i.e. tax year 2010, where no such investment has been declared. Since the taxpayer had failed to provide the relevant details such as the explanatory note-05 mentioned on the balance sheet, as no note had been e-filed along with the audi ted accoun ts, bank stateme nts, books of accounts and the description of nature of investment, therefore, the source of such investment could not be verified or authenticated. The issue was confronted to the taxpayer through show cause notice issued u/s. 121(1)(b) of the Income Tax Ordinance, 2001 vide this offi ce letter No. 001 dated 20.09.2013. In response, the taxpayer vide its letter dated 25.10.2013 submitted complete financial statements and stated that investment of Rs. 8,900,000/- was made in the shares issued by Omni Power (Pvt.) Limited. The taxpayer had also enclosed allotment letter of Omni Power (Pvt.) Limited fi led with SECP. In the said allotment letter the consideration for which shares have been allotted is as follows: a)Property and Assets Acquired b)Other Items Rs. 5,000,000/-. Rs. 3,900,000/-. However, it had failed to provide description, copy of ownership documents and copy of agreement of transfer of the Property and Assets and specification of other items worth Rs. 3.9 Million. Furthermore, in the schedule of fixed assets the taxpayer had also not shown any deletion of property or assets. The taxpayer was therefore, required to show cause as to why the said declared amount of Rs. 8,900,000/- might not have been added ...
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