| Case ID |
08aaac1e-0d2a-492a-96e9-527403965774 |
| Body |
View case body. Login to View |
| Case Number |
I.T.A. No.728/KB of 2008 |
| Decision Date |
Sep 01, 2009 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal held that the regret letter issued by the Commissioner of Income Tax, refusing the exemption certificate, was issued without proper adjudication of the points raised in the application. It was determined that the business profits of the non-resident company were not chargeable to tax in Pakistan, and the Tribunal ruled that the respondent was entitled to the issuance of the exemption certificate under the relevant provisions of the Income Tax Ordinance, 2001. The order of the Commissioner Income Tax (Appeals) directing to issue the exemption certificate was maintained, and the appeal by the Department was dismissed. |
| Summary |
In the case of International Media Corporation FZ LLC, the Income Tax Appellate Tribunal addressed the refusal of an exemption certificate by the Commissioner of Income Tax. The Tribunal emphasized the importance of proper adjudication in tax matters, particularly in relation to the Income Tax Ordinance (XLIX of 2001). The case highlighted the challenges faced by non-resident companies regarding withholding taxes in Pakistan and the need for timely responses from tax authorities. The Tribunal's decision reinforces the rights of non-resident entities to seek exemption certificates when their income is not chargeable to tax in Pakistan, based on the provisions of the Avoidance of Double Taxation Treaty between UAE and Pakistan. This ruling serves as a significant precedent for similar cases and underscores the necessity for tax authorities to act expeditiously in processing exemption applications. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Federal Board of Revenue,
Messrs Independent Media Corporation (Private) Limited
|
| Judges |
JAWAID MASOOD TAHIR BHATTI, JUDICIAL MEMBER,
KHALID SIDDIQUI, ACCOUNTANT MEMBER
|
| Lawyers |
Syed Riazuddin,
Syed Muneer uz Zaman
|
| Petitioners |
Not available
|
| Respondents |
International Media Corporation FZ LLC
|
| Citations |
2010 SLD 2120 = 2010 PTD 428
|
| Other Citations |
2007 PTD 1687
|
| Laws Involved |
Income Tax Ordinance (XLIX of 2001)
|
| Sections |
159,
107,
221,
131
|