ISLAMABAD: Federal Board of Revenue (FBR) detected two cases of irregular claims of losses amounting to Rs114.73 million by M/s Fatima Residency and M/s Capital Assets Leasing Corporation.
According to details, M/s Fatima Golf Residency (NTN 3921232) under the jurisdiction of Regional Tax Office-III, Karachi declared net income amounting to Rs3.172 million; however due to claiming of unadjusted business loss of Rs3.814 million, no tax was worked out. Returns of income of previous years were not available on e-portal due to which authenticity of business loss could not be verified.
It is important to mention here that Section 57 of the Income Tax Ordinance, 2001 provides that if a taxpayer sustained a loss in business for a tax year, the loss would be carried forward to six following tax years and would be adjusted only against profit and gains of such business.
In second case, M/s Capital Assets Leasing Corporation bearing (NTN0801331) under the jurisdiction of Corporate regional tax office, Karachi, claimed losses of Rs110.923 million under the head of unabsorbed tax depreciation for previous year.
In case of any return of previous tax years have been amended through order under section 122 or 122 (5A) the declared income and loss could have been enhanced or reduced, but the same cannot be verified due to non-availability of orders and record.
Federal Board of Revenue directed the concerned tax offices to initiate legal proceeding as per law in light of documentary evidence. On the direction of FBR, both field formations have started work on initiating the legal proceeding.
