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    Tanveer Ahmed
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    The document is a response to a notice regarding late filing of an income tax return for the 2020 tax year. It provides justification for the late filing, stating that the assessee had to attend to an ill family member and the e-FBR portal was inaccessible during the filing period. It argues that late filing was due to circumstances beyond the assessee's control and was a procedural lapse that does not warrant penalization under past judgements. The response emphasizes that penal proceedings require establishing mens rea or guilty mind, which is lacking in this case, and requests leniency given the assessee's history of timely tax payments and compliance.

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    The document is a response to a notice regarding late filing of an income tax return for the 2020 tax year. It provides justification for the late filing, stating that the assessee had to attend to an ill family member and the e-FBR portal was inaccessible during the filing period. It argues that late filing was due to circumstances beyond the assessee's control and was a procedural lapse that does not warrant penalization under past judgements. The response emphasizes that penal proceedings require establishing mens rea or guilty mind, which is lacking in this case, and requests leniency given the assessee's history of timely tax payments and compliance.

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    © All Rights Reserved
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    48 views2 pages

    Tax Explanation Reply

    Uploaded by

    Tanveer Ahmed
    The document is a response to a notice regarding late filing of an income tax return for the 2020 tax year. It provides justification for the late filing, stating that the assessee had to attend to an ill family member and the e-FBR portal was inaccessible during the filing period. It argues that late filing was due to circumstances beyond the assessee's control and was a procedural lapse that does not warrant penalization under past judgements. The response emphasizes that penal proceedings require establishing mens rea or guilty mind, which is lacking in this case, and requests leniency given the assessee's history of timely tax payments and compliance.

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    of 2

    To,

    MIAN MUHAMMAD AZEEM ABID


    Assistant / Deputy Commissioner
    Inland Revenue, Unit-IV, Range I-District Zone, Zone-District
    RTO RAWALPINDI, TAX HOUSE 12-MAYO ROAD
    RAWALPINDI

    SUBJECT: NOTICE UNDER SECTION 182(2) FOR DEFAULT OF SECTION 114 OF THE
    INCOME TAX ORDINANCE, 2001

    Dear Sir,

    (1.) This refers to your notice bearing bar code number 100000087058768 dated as December 13, 2020
    whereby I have been asked to justify as to why penal provisions may not be invoked for late filing of the
    Income Tax return for the Tax Year 2020.

    (2.) In this connection, I would like to inform you that the delay in filing of the Income Tax return for the
    Tax Year 2020 was neither willful nor intentional. I had to go urgent domestic business because one of
    my family members felt severely ill and I had to give proper time to this issue mentioned above.
    Moreover, due to excessive load on the e-FBR portal, IRIS remained inaccessible during working hours
    from December 3 till the last date of filing i.e. December 8, 2020.

    (3.) In view of the above issues as well as compressed working hours owing to Covid-19 outbreak, it was
    not practically possible for the undersigned to file income tax return within the due date of December, 8,
    2020. Late filing of the income tax return is merely a procedural lapse, which, as per plethora of
    judgements cited below, is condonable: a) 2010 PTD 1515 (ATIR) - Procedural lapse was not culpable
    b) 2017 PTD 846 (ATIR) - Procedural lapse and no loss of revenue
    c) 2007 PTD (Trib.) 728
    d) 2010 PTD (Trib.) 975 e) 2007 PTD 2286 (ATIR) - Procedural lapse and no loss of revenue

    (4.) I want to state further that there is a well-known legal maxim "Lex non cogit ad impossibilia", which
    means that the law cannot compel a man to do what he cannot possibly do. If there is an impossibility on
    the part of a person to perform an obligation, law would not expect the person to do that impossible thing.
    It is a settled legal position that a person cannot be constrained to do something which is impossible. This
    maxim specifies the general rule that where the law creates a duty or charge, and that party is disabled to
    perform it without any default in him and has no remedy over them, the law in general excuses him.

    (5.) Without prejudice to the above, I would like to further submit that an essential element to be
    considered in penal proceedings is “mens rea” which is essential for invoking penal proceedings. There
    are various ingredients to invoke penal provisions, which are:

    (a) penalty proceedings being criminal or quasi-criminal, establishment of mens rea is an essential
    ingredient and as such the statutory obligation is on the revenue to prove that the assessee has acted
    deliberately in defiance of law or was guilty of conduct contumacious or dishonest or acted in conscious
    disregard of his obligation.
    (b) mens rea is an essential ingredient of penalty proceedings; the revenue should establish mens
    rea or the guilty mind of the assessee.

    (5.1) In support of my contention, I would like to draw your attention to the following decisions:

    (i) in the Supreme Court of Pakistan case reported as P.L.D 1967 (S.C.) (1) the late Hamood-ur-
    Rahman, J., observed that “even in the case of statutory offence the presumption is that mens rea is an
    essential ingredient”.

    (ii) In the case of Mohammad Muslim V. CIT Karachi (1980) 42 Tax 129, the Sind High Court,
    Karachi held that penalty could be imposed only when the revenue establishes a case indicating dishonest
    motive of an assessee.

    (iii) in the case of Kamran Steel Rolling Mills Vs. Commissioner of Income Tax, Lahore Zone,
    Lahore reported as 60 Tax 13, the Lahore High Court held that penal proceedings are criminal in nature
    and, therefore, have to be established independently on the basis of cogent evidence, as is required in
    criminal proceedings. For imposition of penalty, it is not sufficient that the assessee’s explanation was not
    satisfactory or even false and that evidence independent of the assessee’s explanation should be recorded
    before penalty could be imposed.

    (5.2) Further, I consider it pertinent to draw your attention to a decision of the Customs, Excise and Sales
    Tax Appellate Tribunal. The Karachi Bench of the Tribunal in the case of Appeal no. 1650/99 dated
    October 27, 2000 has held that penalty is to be levied in cases where the element of mens rea is
    established. The relevant extract is reproduced below:

    “However, in the matter of additional tax and penalty, we find that there is no mens rea
    is this case, and the appellant has not willfully tried to evade the tax liability, and therefore,
    remit the additional tax and penalty imposed on the appellant. Reliance is placed in
    PLD 1967 SC 1, PLD 1991 SC 963, (1980) 42 tax 129 Karachi and 60 Tax 13 Lahore”.

    (6) Last of all, I would like to state that under-mentioned is a noble Pakistani citizen. He is genuine tax
    payer and has never defaulted his payment of tax nor he ever performed such a misconduct to file the tax
    return. I hope that not only you will give me favour and will consider my case appropriately.

    Yours Truly

    TANVEER AHMED
    (37101-2853963-7)
    House No. BXII 114, Mohallah
    Karbalah, Attock

    CC:
    1. Personal File

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