Before The Commissioner Inland Revenue (Appeals-I)

Lahore

GROUNDS OF APPEAL

M/s Etimad Private Limited

NTN # 4164356-9
Tax year 2016

AGAINST ORDER NO. 100000045543387 DATED 15-02-2019 (HEREINAFTER AS

‘ORDER IN ORIGINAL’) PASSED BY ASSISTANT COMMISSIONER INLAND REVENUE
(HEREINAFTER AS ‘ACIR’), ENFORCEMENT & COLLECTION, UNIT-25, RANGE-II,
ZONE-IV, LTU, LAHORE UNDER SECTION161/2015(3) OF THE INCOME TAX
ORDINANCE, 2001

1. That the online order No. 100000045543387 dated 15-02-2019 passed by the
learned Assistant Commissioner Inland Revenue, Enforcement & Collection,
Unit-25, Range-II, Zone-IV, LTU, Lahore, is bad in Law and against the facts of
the case.

2. That the learned ACIR has not rightly/fully considered our submissions as made
vide our office Letter No. IT/EPL/2018/ and IT/EPL/2018/890 dated 06-06-
2018 and 29-10-2018 respectively, and proceeded further and passed impugned
order.

3. That the learned ACIR totally misconstrued the nature of payments made to
Raaziq International Pvt. Ltd and M/s Ofspace (Pvt.) Limited and erred to treat
payments of electricity and maintenance invoices/bills as rent expense and
created demand on account of non-deduction of tax Rs. 1,552,713/- under section
155.

4. Without prejudice to the ground no. 3 above, despite clearly mentioning at page
no. 2 of the impugned order that the appellant provided the requisite record,
grossly erred to ignore the payment of withholding tax and totally disregarded the
CPRs of withholding tax paid in excess of Rs. 1,146,243/- against payments made
to M/s Raaziq International Pvt. Ltd and M/s Ofspace (Pvt.) Limited.

5. Without prejudice to the ground no. 3 & 4 above, the recipient M/s Raaziq
International Pvt. Ltd and M/s Ofspace (Pvt.) Limited is a limited liability
company who has already discharged his tax liability after inclusion of all the
receipts from the appellant in its annual tax return and amount escaped from
withholding if any has already suffered the incidence of due tax.

6. Without prejudice to the ground no. 3, 4 & 5 above the learned ACIR totally
ignored the valid exemption certificate bearing online no. 100000005952421
dated 14-07-2015 valid upto 31-12-2015 issued to M/s Allied Rental Modarba and
proceeded against the facts available on record and created demand on account of
non-deduction of tax Rs. 1,026,932/- under section 155 under the head of rent,
copy of the same provided during the assessment stage also enclosed as ready
reference.

7. That the learned ACIR misconstrued the nature of payment and exemption from
withholding of the same as provided under clause 43(B) of part IV of the second
schedule to the Income Tax Ordinance, 2001 and proceeded against the facts
available on record and created demand on account of non-deduction of tax Rs.
36,865/- under section 153(1)(b) under the head of travelling and conveyance.

8. That the learned ACIR totally ignored the record/details provided at assessment
stage and created demand on account of non-deduction of tax Rs. 3,232/-.
9. Without prejudice to the ground no. 8 the learned ACIR misconstrued the
payments made during the tax year to M/s Augere Pakistan (Pvt.) Limited and
disregarded the supporting documents of withholding provided during the
assessment stage, which are also enclosed as ready reference.

10. That the appellant craves leave to amend, alter, modify, add or withdraw any
ground of appeal on/or before the date of hearing.

Pray
In view of the foregoing, it is prayed that the impugned order, being illegal,
against the facts of the case and based on misunderstanding of the factual position
may kindly be vacated to meet the ends of justice.

Any other relief deemed appropriate in the facts and circumstances of the case
may also be considered and allowed.

Appellant - - - - - - - - - -