| Case ID |
0318fa50-b580-4e9d-897e-fc449c48a672 |
| Body |
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| Case Number |
I.T.A. No.1194/LB of 2007 |
| Decision Date |
Jun 02, 2008 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal ruled that the assessment made under sections 161 and 205 of the Income Tax Ordinance, 2001 was invalid. The Tribunal confirmed that the Taxation Officer's order treated the taxpayer as in default for failing to withhold tax on fixed asset transactions, which were not subject to the provisions of section 153. The Tribunal upheld the First Appellate Authority's cancellation of the assessment order, emphasizing that the taxpayer had correctly not withheld tax on purchases made from its sister concern. The Department's appeal was dismissed, affirming the legality of the First Appellate Authority's decision. |
| Summary |
In the case presented before the Appellate Tribunal Inland Revenue, the core issue revolved around the interpretation and application of the Income Tax Ordinance, 2001, particularly concerning the withholding tax obligation on transactions involving fixed assets. The taxpayer, a Private Limited Company, had made purchases from its sister concern, Dollar East Company Limited, and contended that it was not required to withhold tax under section 153 during these transactions. The Taxation Officer had previously declared the taxpayer as in default for not withholding tax and imposed additional tax under sections 161 and 205. However, the First Appellate Authority found merit in the taxpayer's argument, leading to the cancellation of the Taxation Officer's order. The Appellate Tribunal upheld this cancellation, emphasizing the importance of adhering to the letter of the law as it pertains to the definitions of 'goods' and 'supply' in fiscal statutes. The Tribunal referenced previous judgments that supported the taxpayer's position, concluding that the transactions in question did not fall under the taxable purview as defined by the relevant sections of the law. This case underscores the critical nature of proper legal interpretation in tax matters, particularly in the context of asset transactions and the obligations of withholding agents under the Income Tax Ordinance. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Private Limited Company,
Dollar East Company Limited
|
| Judges |
JAWAID MASOOD TAHIR BHATTI
|
| Lawyers |
Sabiha Mujahid,
Dawood Iqbal
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2008 SLD 36,
2008 PTD 1683,
(2008) 98 TAX 85
|
| Other Citations |
1999 PTD 4028,
2006 PTD 1888,
2002 PTD 2705,
2005 PTD 1303,
2003 PTD 1167
|
| Laws Involved |
Income Tax Ordinance, 2001,
Income Tax Ordinance, 1979
|
| Sections |
120,
161,
166,
120(1)(b),
122,
153,
155,
205,
122(1),
52
|