Overturning Incorrect Tax Assessment Through Tribunal Appeal

Client, a manufacturing business, received a tax assessment order from FBR alleging under-declaration of income and disallowing legitimate business expenses. The assessed additional tax liability exceeded Rs. 1.2 crore plus penalties.

Challenges: (1) complex factual matrix involving multiple tax years and transactions, (2) FBR's reliance on presumptive assessment methodology, (3) need to reconstruct business records from partial documentation, and (4) tight statutory timelines for appeal.

Our approach: (1) conducted detailed forensic review of client's financial records to identify allowable deductions, (2) engaged chartered accountant expert to prepare alternative computation, (3) compiled comparative industry data to support profit margins, and (4) filed comprehensive appeal with legal arguments challenging FBR's methodology under applicable provisions of Income Tax Ordinance 2001.