| Case ID |
15b1aba2-5cdb-4a02-ae79-d6bb49084740 |
| Body |
View case body. Login to View |
| Case Number |
W.P. No. 21403 OF 2014 |
| Decision Date |
Apr 04, 2017 |
| Hearing Date |
Apr 04, 2017 |
| Decision |
The Lahore High Court dismissed the constitutional petitions challenging the demand of advance tax/withholding tax on the registration of motor vehicles under section 231-B of the Income Tax Ordinance, 2001. The court found that the petitioners, as subsequent purchasers, were liable to pay advance tax since they had not paid tax under section 148 at the time of import. The court emphasized that the exception provided under section 231-B(4) applies only to the original importer or the same person who paid the tax. The judgment reinforced the principle that income tax is on the income of a specific person and not on the goods, concluding that the petitioners' cases did not meet the criteria for exemption from advance tax. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, specifically section 231-B, which deals with advance tax on the registration of motor vehicles. The Lahore High Court addressed the legality of the advance tax demanded from petitioners who were subsequent purchasers of imported vehicles. The court ruled that since the petitioners had not paid the applicable taxes at the time of import, they were liable for the advance tax during registration. The decision highlighted the strict interpretation of tax laws favoring revenue authorities and clarified the conditions under which exceptions to tax payments could be claimed. This ruling is significant in understanding the obligations of vehicle purchasers regarding tax liabilities and the interpretation of tax statutes in Pakistan. |
| Court |
Lahore High Court
|
| Entities Involved |
Federal Board of Revenue,
Excise and Taxation Department
|
| Judges |
Abid Aziz Sheikh
|
| Lawyers |
Mr. Ikram Ullah Malik,
Mian Muhammad Javaid,
Mr. Zafar Iqbal
|
| Petitioners |
ABID AZIZ SHEIKH, JUDGE,
SARDAR QASIM HASSAN KHAN
|
| Respondents |
FEDERATION OF PAKISTAN ETC.
|
| Citations |
2017 SLD 867,
2017 LHC 1165,
(1978) 115 TAX 445,
2017 PTD 2064,
2018 PTCL 9
|
| Other Citations |
PLD 2014 SC 766,
1992 SCMR 1652,
1999 PTD 1078,
1998 SCMR 1950
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
148,
231B,
231B(2),
231B(4),
199
|