| Case ID |
007233ea-234b-4f29-94ef-ef803daf0d2d |
| Body |
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| Case Number |
AT-35/2016 |
| Decision Date |
Jan 23, 2017 |
| Hearing Date |
|
| Decision |
The appeal was filed challenging the penalties imposed under the Sindh Sales Tax on Services Act, 2011. The Appellate Tribunal upheld the decision of the Commissioner (Appeals) which had maintained the order regarding tax liability but set aside the penalties. The Tribunal ruled that the penalties under sections 43(3) and 43(6)(d) cannot be invoked simultaneously as they pertain to different situations. It was emphasized that for imposing penalties, the presence of mens rea (guilty mind) is essential, and the department failed to establish that the non-payment of tax was done knowingly or fraudulently. Therefore, the imposition of penalties was deemed illegal and unsustainable. |
| Summary |
In the case of Assistant Commissioner, Unit-4, SRB vs M/s. Optimus Capital Management (Pvt.) Limited, the Appellate Tribunal of the Sindh Revenue Board addressed the legality of penalties imposed under the Sindh Sales Tax on Services Act, 2011. The case centered on whether penalties could be applied simultaneously for the same offence of non-payment of tax. The Tribunal concluded that penalties under different subsections of the law cater to distinct situations and cannot overlap. The decision highlighted the necessity of proving mens rea for penalties related to tax evasion, stressing that mere non-payment does not automatically lead to penalties without evidence of fraudulent intent. The ruling reinforces the legal principle that tax penalties must be substantiated with clear evidence of wrongful intent, thereby ensuring the protection of compliant taxpayers against unjustified penal measures. |
| Court |
Appellate Tribunal, Sindh Revenue Board
|
| Entities Involved |
M/s. Optimus Capital Management (Pvt.) Limited
|
| Judges |
MR. JUSTICE (R) NADEEM AZHAR SIDDIQI,
MR. AGHA KAFEEL BARIK
|
| Lawyers |
Mr. Tariq Ali,
Mr. Gohar Manzoor,
Mr. Farid ul Hasan,
Mr. Nadeem Usmani
|
| Petitioners |
ASSISTANT COMMISSIONER, UNIT-4, SRB
|
| Respondents |
M/S. OPTIMUS CAPITAL MANAGEMENT (PVT.) LIMITED
|
| Citations |
2017 SLD 1014,
2017 PTCL 619,
2017 PTD 2108,
(2017) 117 TAX 194
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Sindh Sales Tax on Services Act, 2011,
Income Tax Ordinance, 2001
|
| Sections |
43(3),
43(6)(d),
111
|