Reply to Best Judgment Assessment Notice

BEFORE THE LEARNED COMMISSIONER INLAND REVENUE, rto_name, rto_city

In response to Notice dated notice_date bearing reference notice_reference Under Section 121 of the Income Tax Ordinance 2001

taxpayer_name, taxpayer_status, NTN: taxpayer_ntn, taxpayer_address ... Taxpayer / Respondent

REPLY TO NOTICE FOR PROPOSED BEST JUDGMENT ASSESSMENT UNDER SECTION 121 OF THE INCOME TAX ORDINANCE 2001

Respectfully sheweth:

1. That the Taxpayer has the honour to receive the Notice dated notice_date bearing reference notice_reference, by which the learned Commissioner proposes to make a best judgment assessment of the Taxpayer's income for tax year tax_year under Section 121 of the Income Tax Ordinance 2001 on the ground that notice_grounds, and proposes to determine taxable income at Rs. proposed_income and tax liability at Rs. proposed_demand.

2. That the Taxpayer respectfully submits that the proposed best judgment assessment is unsustainable in fact and in law, for the reasons set out below, and that the proper course is to determine the assessment under Section 120 of the Ordinance on the basis of the return of income and the books of account maintained by the Taxpayer.

3. That the Taxpayer is and has been engaged in the business / profession of business_description, with verifiable transactions evidenced by audited books of account, bank statements, invoices, and contracts that were duly produced before the Inland Revenue Officer.

4. That the Taxpayer's filed return of income for tax year tax_year reflects the true and correct position of the income, expenses, and tax liability of the Taxpayer, and there is no material justifying recourse to a best judgment assessment.

5. That the grounds stated in the Notice are answered as follows: response_to_notice_grounds. Each ground is misconceived and proceeds on a misreading of the record.

6. That the Taxpayer has at all material times maintained and produced the books of account, including general ledger, cash book, sales and purchase registers, and supporting vouchers, in accordance with Sections 174 and 177 of the Ordinance. books_of_account_position.

7. That the comparable cases relied on by the Inland Revenue Officer (if any) for proposing the assessment are not comparable in scale, nature of business, geographic location, or trading conditions, and cannot form a sound basis for best judgment assessment of the Taxpayer.

8. That a best judgment assessment must be made fairly, reasonably, and on the basis of relevant and credible material. It cannot be arbitrary, capricious, or based on conjecture, as has been consistently held by the superior courts of Pakistan and the Appellate Tribunal Inland Revenue.

9. That the Taxpayer hereby produces / re-produces the following documentary evidence in support of the return of income for tax year tax_year: evidence_list.

10. That if the learned Commissioner desires further information or explanation on any specific point, the Taxpayer offers itself for personal hearing and undertakes to produce any further documentary evidence that may be required.

PRAYER

It is, therefore, most respectfully prayed that the learned Commissioner Inland Revenue may be pleased to:

(a) Withdraw the Notice dated notice_date bearing reference notice_reference proposing best judgment assessment;

(b) Direct that the assessment for tax year tax_year be made under Section 120 of the Income Tax Ordinance 2001 on the basis of the Taxpayer's return of income and books of account;

(c) Grant the Taxpayer an opportunity of personal hearing in accordance with the principles of natural justice;

(d) In the alternative, if any best judgment assessment is to be made, do so on the basis of credible material and after disclosing the basis to the Taxpayer; and

(e) Grant any other or further relief that the learned Commissioner may consider just and proper in the circumstances.

VERIFICATION

Verified on solemn affirmation at verification_place on this _____ day of _____, year, that the contents of the above reply are true and correct to the best of my knowledge and belief and nothing material has been concealed therefrom.

_____________________________ taxpayer_name Taxpayer Through: _____________________________ counsel_name Advocate / Authorised Representative