Returns and Assessments Chapter- 17Q.2 (b) Autumn 2011 On 9 September 2011, Mr. Yaqoob received a notice from the Income Tax
Department requiring him to make payment of the outstanding tax demand in compliance of an assessment
order issued by the CIR. Presently, Mr. Yaqoob is experiencing cash flow difficulties and is therefore not
able to pay the amount as required in the notice.
Required: As a tax consultant, advise Mr. Yaqoob about the due date for payment of tax and recourse
available to him if he is not in a position to make payment of the tax on time.
Q.NO. 3(b) Spring 2010 Mr. Sami has recently received a notice from the CIT to file return of income for
the tax years 2003 and 2006 within 20 days of receiving the notice. In your capacity as a tax consultant,
advise Mr. Sami on the following issues along with appropriate explanations.
(i) Is the Commissioner Inland Revenue justified in issuing the above notice?
(ii) If Mr. Sami is not in a position to meet the deadline for filing the returns, can he get an extension?
Q.6 (a) Sept 2009 Mr. Zia's father expired in March 2009. Being the only heir, he received all his father's
business and assets. In August 2009, a notice was received from the income tax department in the name
of his father to pay unpaid tax liabilities along with penalty and default surcharge. Mr. Zia is of the view that
since his father expired, the notice is irrelevant.
Required: In the light of Income Tax Ordinance, 2001 explain the correct legal position of Mr. Zia with
regard to his father's income tax liabilities and the related income tax proceedings.
Q.NO. 4(a) Autumn 2009 (a) State the provisions of the Income Tax Ordinance, 2001 with regards to
rectification of mistakes.
(b) Ayub Limited has been selected for the audit of its income tax affairs. The management is of the opinion
that since their tax affairs were audited last year also, they should not have been selected for audit this
year.
Required: Discuss the management’s point of view in the light of Income Tax Ordinance, 2001.
Q.NO. 5(a) Spring 2009 What do you understand by the term “definite information” as described in the
Income Tax Ordinance, 2001?
Q.NO. 5(b) Spring 2009 Nomani Industries (Pvt.) Limited filed their return of income for the year ended
June 30, 2007 on December 31, 2007. On January 15, 2009, the Taxation Officer issued a notice requiring
the company to file the audited financial statements. The Taxation Officer has also identified certain errors
in the return of income filed for the year and has shown his intention to amend the assessment of the
Company for the year.
Required:
(i) When is a return of income regarded as ‘incomplete’ for tax purposes?
(ii) Is the taxation officer justified in issuing the above notice? Explain.
(iii) Discuss the circumstances under which taxation authorities may amend the assessment order of a
company.
(iv) Identify the specific date up to which the taxation authorities may amend the assessment of NI (Pvt.)
Limited. Assume that the return of income was complete on December 31, 2007 when it was filed.Q.NO. 3(c) Spring 2008 Under what circumstances, the CIT can require a person to furnish a return of
income for a period of less than twelve months?
Q.NO. 2(a) Autumn 2008 List the persons who are required to file a return of income under the Income Tax
Ordinance, 2001.
Q.NO. 5(b) Spring 2007 Under the ITO, 2001, the Commissioner Inland Revenue may serve upon the
taxpayer, a notice requiring him to pay any tax due within such time as may be specified in the notice.
Describe the modes of recovery available to the CIR, if the taxpayer fails to pay the amount of tax within the
time specified in the said notice.
Q.NO. 6(b) Spring 2007 Every resident taxpayer whose last declared or assessed income is Rs.500,000 or
more is required to furnish a wealth statement for that year along with the income tax return.