ISLAMABAD: The Federal Board of Revenue (FBR) has chosen the case of presenter Imran Riaz Khan seeking an income tax audit.
The document available with this scribe indicates that Inland Revenue Zone-II Commissioner Noman Malik served notice on Imran Riaz Khan regarding the selection of the case for audit u/s 177 of the 2001 Ordinance on income tax for the 2020 tax year.
“You have filed a statement of total income for the year under reference declaring an income of Rs 15.5 million and your case for the tax year 2020 has been selected for verification of your tax affairs u/s 177 of the Income Tax Ordinance, 2001 for the following reasons,” the notice read.
It further states that as per the asset declaration, the anchor person declared liabilities amounting to Rs. 25.4 million.
“Whether the said amount was received by crossed check or not should be considered in the light of the provisions of Section 39(3) and 34(5) of the Income Tax Ordinance 2001”, reads -on in the notice.
The notice states that Khan declared a residential property “Plot No 65 Millat Tractors Employees Society – Residential Plot 2 /Canals Lahore” in the amount of Rs 36.5 million, however, in the tax year 2021 , he said “65, 66 Millat Tractors Housing Society Lahore – Built Residential House” at Rs. 32.5 million.
“It is clear that despite the addition in Property No. 66 and the cost of construction, the calculation of the property has been reduced. This aspect must be verified in accordance with Section 111 of the Taxation Ordinance on 2001 income for concealment of construction costs and expenses,” the notice reads.
The notice states that Khan has added 72 kanals of agricultural land located in Sheikhupura district to ‘Moza Ratni Wal Tehsil Ferozewala’ for an amount of Rs 7.4 million.
“This should be checked if the said agricultural property is declared at cost in accordance with Section 76 of the Income Tax Ordinance 2001”.
“You reported farmland – but no farm income was reported for the year, which needs to be verified,” the notice reads.
“The relevant Deputy Commissioner of Inland Revenue will contact you to carry out the audit by May 15, 2022 and we hope that you will cooperate fully with the audit process. Rest assured that if no discrepancies are found, the audit procedure will be discontinued without hesitation,” the notice adds.
When contacted, Imran Riaz Khan said he had not yet received the notice as it may have been dropped off at his old address.
“My address is updated in My ID,” he added.