NADEEM DAR, ACCOUNTANT MEMBER.--- This appeal has been filed by the department against the order No. 95 dated 29.01.2013 passed by CIR(A), Peshawar.
2. Facts are, the appellant individual derives income from M/s. Shahid Crockery Store, Haripur. Tax year 2009 was selected for audit by CIR vide letter dated 07.04.2011 and for non-compliance of notices ex parte order was passed. CIR(A), Peshawar vide order dated 29.01.2013 annulled assessm ent on ground that CIR was not empowered to select case for audit in presence of Section 214C which empowers FBR to select cases for audit by relying on LHC decision in WP-393/2012 dated 10.05.2012. The department has filed 2nd appeal by placing reliance on judgment of Supreme Court that reversed paid LHC judgment.
3. By now, both LHC and IHC have passed numerous decisions to the effect that powers of sections 214C and 177 with the Board and with. CIR, to select cases for audit are not mutually exclusive, but are concurrent and both can select persons for audit. Learned AR also cited PHC judgment in WP No. 249-A of 2015 (announced on 02.07.2015) para 11 thereof states:--- "...'11. We also subscribe to the view adopted by the honourable Islamabad High Court and the Honourable Lahore High Court in a recent judgment for more than one reason..."
This view subscribed to by honourable PHC, is earlier given at para No. 10 of its judgment, that: "... a contrary view has come to surface vide judgment of the Honourable Islamabad High Court dated 12.03.2013, and recent judgment of the Honourable Lahore High Court dated 27.05.2015, thereby dissenting from the view taken by an honourable bench of the same High Court ,n Messers Chenone Stores Limited.... ... the current prevailing view, reflected in the judgment of the honourable Islamabad High Court dated 12.03.2013, .... unequivocally hold that powers of Commissioner under Section 177 of ITO were independent of powers of the Board under Section 214C of ITO and that nothing contained in Section 214C, ITO restricted powers of the Commissioner to call for record or documents including books of accounts of the taxpayer for audit and to conduct audit under Section 177 of the ITO..."
4. As such, order of the learned CIR(A), Peshawar is cancelled and that of the department dated 28.02.2012 is restored.