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Ahmad Shakeel Babar

Second Secretary (BTB)

FBR-HQ, Inland Revenue
FBR House
Constitution Avenue
G-5, Islamabad

Dated: 28.02.2018

SUBJECT: Your Office Letter No. 1 (64) S S (BTB-II) 2018 dated 15.02.2018

Dear Sir,

I act for Mrs Qurat-ul-Ain Zaheed r/o House No. 117, Block F/1, Wapda Town Lahore,
whom I shall hereinafter refer to as ‘the Client’. I have been instructed by the Client to
respond to the captioned communication issued from your office.

I state as below:

1. Firstly, I desire to comment upon a little misunderstanding emerging from your

letter above-referred. You state that the Client has expressed her ‘inability’ to
file the return as required. I may clarify that this statement misrepresents the
Client’s contention. The Client in her Reply dated 02.02.2018 did not anywhere
state that she was ‘unable’ to file the return. What she expressed was that she
was not liable to file a return under the provisions of section 114, Income Tax
Ordinance 2001.

2. You have written in the captioned letter in para 2 that “I am directed to say that
the subject-mentioned notice was issued under section 114 (4) of the Income Tax
Ordinance 2001. The said section empowers the Commissioners Inland Revenue to
require any person regardless of his/her sources of income or residential status’. I
submit that this does not bring out the legal position correctly as shown below.

3. Section 114 (4) of the ITO, 2001 is reproduced in full as below:

(4) Subject to sub-section (5), the Commissioner may, by notice in writing,

require any person who, in the Commissioner‘s opinion, is required to file a
return of income under this section for a tax year or assessment year but
who has failed to do so, to furnish a return of income for that year within
thirty days from the date of service of such notice or such longer or shorter
period as may be specified in such notice or as the Commissioner may

From the above, it is clearly manifest that the Commissioner is empowered to

require any person to file the return only if that person is required to file a return of
income under this section i.e. section 114. The requirements to file a return in
respect of a person are mentioned in clause (1) of section 114. The Client’s case
may fall only under sub-clause (ab) of section 114 of the ITO 2001.

4. In respect of clause (ab) of clause (1) of section 114 of the ITO 2001, the facts of
my Client are as under

i. My Client is a school teacher since 2003. She has no other source of income.
Her total income is not liable to taxation under the provisions of the ITO
2001. Certificate of her current salary with break-up is enclosed herewith.

ii. The motor vehicle purchased by her was not above 1000 CC and was
purchased by her savings from the income received in shape of salary since

I hope that above satisfies your concerns. I request therefore that the notice
against the Client may very kindly be discharged.

Shehzad Haider
Advocate High Court


ABS & Co
Advocates & Corporate Counselors
9-Fane Road, Lahore

Enclosed: as above