Tax amendments without Proper Procedure & Audit Report u/s 177(6) is annulled by ATIR

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From: Asif Siddiq Kasbati <asif.s....@professional-excellence.com>

Date: Thu, Jun 4, 2026 at 7:55 PM
Subject: TLQC3547= Tax amendments without Proper Procedure & Audit Report u/s 177(6) is annulled by ATIR

EXECUTIVE SUMMARY

 

Case Overview: The appeal was filed by TY 2018 against an amended assessment order which imposed a increase tax demand of Rs ------------. There was a deemed assessment under Section 120 and was amended due to non-compliance during an audit.

 

Amended Assessment: The amended assessment included unexplained income, leading to additrional tax liability of Rs. ______________.

 

Legal Arguments: The Appellant's Representative argued that the assessment was illegal due to the lack of an Audit Report, which is a mandatory requirement before amending assessments. The Respondent maintained that the order was lawful, citing sufficient opportunities provided to the taxpayer.

 

Tribunal Findings: ATIR concluded that the issuance of an audit report is a jurisdictional requirement. The absence of the Audit Report invalidated the amended assessment, as it contravened the provisions of Sections _____ and _____122.  Hence, ATIR annulled the amended assessment order.

 

DETAILS - Kept Short to save your Goodself time - for further details refer to the Full Case-Law (Attachment 

 

A. Reference of issue

 

Further to KQU ------ of -------, being an important matter, we would inform you about -------------- (Attachment 3547.1) in ensuing paragraph, with emphasis ours in bold & Underline for quick reading.

 

------------

B. Brief facts

 

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C. Appearance of Authorized Representative & Departmental Representative

 

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D. Contentions of the Authorized Representative

 

1 to 4

 

E. Decision

 

1 to 2

 

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Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants) 

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