KARACHI: In the instant case, the Complainant voluntarily filed his return of total income for tax year 2021 declaring taxable income Rs.745,254/- and showing withholding tax deduction Rs.263,201/- . Reportedly the return was filed by a tax practitioner on his behalf.
Then he came to know that M/s. Nadeem Corporation, bearing NTN 5991359-5 had shown supplies in his name amounting to Rs.26,319,955/- on which tax @ 1% under Section 236H of The Ordinance, 2001 was deducted. He sent an application to chairman FBR and requested to initiate action against M/s. Nadeem Corporation for recording fake supplies against his name. When complainant received no response from FBR, he approached Federal Tax Ombudsman.
Federal Tax Ombudsman recommended FBR for detailed investigation of sales tax of M/S Nadeem Corporation. Sales Tax returns as well as comprising details of domestic supplies of M/S Nadeem Corporation revealed that the registered person did not pay tax against its supplies to un-registered persons under section 3(1A) of the Sales Tax Act,1990 .
The aforementioned position clearly depicts that M/S Nadeem Corporation had committed tax fraud, as they knowingly, dishonestly, and without any lawful excuse made taxable supplies to the unregistered persons without paying further tax and with deliberate and malafide intent evaded the further tax which they were required to deposit in the Government Exchequer.
The Federal Tax Ombudsman directed FBR to co-opt the complainant. The concerned officer contacted Mr.Ghulam Dastageer (Complainant) and to verify the stance of Nadeem Corportation regarding supply of good and also asked to provide certain documents. Mr. Mohsin Nadeem one of the partners in AOP of M/S Nadeem Corporation submitted his reply wherein he stated that he had supplied goods to the complainant and provided sales invoices, sales register .However he failed to produce purchase order of the complainant, delivery challan and other major documents necessary for proving the supply of goods.
As per Hon’ble FTO’s directions to FBR, the case of M/S Nadeem Corportaion had been referred to Intelligence &Investigation–IR for detailed investigation. As soon as investigation is completed, fate of fake declaration shall be decided as per facts of the case.