| Case ID |
0255e6e9-c218-4a9d-965e-95a062a5eae9 |
| Body |
View case body. Login to View |
| Case Number |
I.T.A. No.749/LB of 2012 |
| Decision Date |
Jun 28, 2012 |
| Hearing Date |
|
| Decision |
The appeal of the taxpayer has been accepted. The Appellate Tribunal determined that the taxpayer was an individual and not an Association of Persons (AOP). The lower authorities did not adequately consider the evidence provided by the taxpayer, which included returns filed as an individual. The Tribunal concluded that the taxpayer was not obliged to deduct tax as per sections 153(7)(h) or (i) of the Income Tax Ordinance, 2001. The order passed under sections 161/205 was annulled and the order of the First Appellate Authority was vacated. |
| Summary |
This case revolves around the determination of the taxpayer's status as an individual versus an Association of Persons (AOP) under the Income Tax Ordinance, 2001. The taxpayer, Islamabad Steel Furnace, Gujranwala, contested the tax deductions imposed due to a default claim by the revenue authorities. The crux of the case was whether the taxpayer's annual turnover exceeding Rs.50 million necessitated the classification as an AOP, thereby imposing obligations to deduct taxes. The Tribunal found that the taxpayer had provided compelling evidence, including returns filed as an individual, which the lower authorities had overlooked. The decision underscores the importance of due process and proper evaluation of evidence in tax matters, affirming the taxpayer's individual status and concluding that the tax deductions were improperly applied. This ruling is significant in clarifying the definition of prescribed persons under the Income Tax Ordinance and the criteria for tax deductions, particularly for those claiming individual status despite high turnover. Keywords: Income Tax Ordinance, tax deductions, Association of Persons, individual taxpayer, judicial review. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
|
| Judges |
MUHAMMAD NAWAZ BAJWAH, JUDICIAL MEMBER,
SOHAIL AFZAL, ACCOUNTANT MEMBER
|
| Lawyers |
Shoaib Ahmad Sh. for Appellant,
Mrs. Fouzia Fakhar, D.R. for Respondent
|
| Petitioners |
Islamabad Steel Furnace, Gujranwala
|
| Respondents |
C.I.R., R.T.O., Gujranwala
|
| Citations |
2012 SLD 117,
2012 PTD 1732
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
161,
205,
153(7)(h)(i)
|