ISLAMABAD: Federal Board of Revenue (FBR) directed Corporate Regional Tax Office (CRTO) Karachi to impose penalty of Rs16974.79 million on the concealment of income by M/s International Complex Project.
Federal Board of Revenue has rejected the plea of the CRTO that contested the issue on the grounds that exemption was provided to profit under clause 99 A of Part-1 of the 2nd Schedule vide Finance Act 2007.
According to FBR, the said clause allowed exemption against residential project, whereas the matter was pertained to commercial project and directed the CRTO to take action as per law to recover the loss and responsibility may be fixed on the official at fault.
It is necessary to mention here that M/s International Complex Project Private Limited NTN 0710729-3 under the jurisdiction of Corporate Regional Tax Office Karachi concealed income and furnished inaccurate particulars of such income and evaded tax liability but the penalty equal to tax was not imposed by the CRTO. This resulted in loss of government revenue amounting to Rs16974.79 million.
It is important to mention here that according to Section 82 (12) of the Income Tax Ordinance 2001, where a person has concealed income or furnished inaccurate particulars of such income, suppression of any income or amount chargeable to tax, the claiming of any deduction for any expenditure not actually incurred or any act referred to section 111, in the course of any proceeding under this ordinance before any income tax authority or the appellate tribunal, such person shall pay a penalty of twenty five thousand rupees or an amount equal to the tax which the person sought to evade whichever is high.
