| Case ID |
16d2a476-4982-4a81-a9ad-0eef542ebf27 |
| Body |
View case body. Login to View |
| Case Number |
I.T.As. Nos. 836/KB to 839/KB of 2006 |
| Decision Date |
Oct 28, 2008 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal determined that payphone cards, which were sold by the assessee, are distinct from prepaid cards, and thus the provisions of section 236(1)(b)(3) of the Income Tax Ordinance, 2001 do not apply to them. The Tribunal upheld the argument that the tax on payphone cards was not applicable as these cards are utilized in a different context compared to prepaid cards, which are subject to withholding tax. Furthermore, it was found that the assessee had fulfilled its tax obligations under section 236 related to telephone bills issued by Pakistan Telecommunication Corporation Limited (PTCL). The Tribunal's decision reinforces the principle that in cases of ambiguity in tax law, the benefit should be given to the taxpayer. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, particularly sections 161 and 236, regarding the withholding tax obligations of the assessee concerning payphone cards. The Appellate Tribunal Inland Revenue analyzed the distinctions between payphone and prepaid cards, ultimately concluding that the latter was subject to withholding tax while the former was not. The Tribunal emphasized that legislative clarity is crucial, and any ambiguities should favor the taxpayer. The decision is significant in the context of tax law where the classification of services can impact tax liabilities. The case highlights the importance of understanding the nuances of tax legislation, particularly in the telecommunications sector, where different types of services and products are offered. Keywords include 'Income Tax Ordinance', 'withholding tax', 'payphone cards', 'taxpayer rights', 'telecommunications tax obligations', which are trending topics in the realm of tax law. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
JAVED IQBAL,
JAWAID MASOOD TAHIR BHATTI,
SHAHID AZAM KHAN
|
| Lawyers |
Hassan Naeem,
Asad Fawad,
Rehmatullah Wazir,
Farrukh Ansari,
Zain Aslam Ali
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2009 SLD 1177 = 2009 PTD 590 = (2009) 99 TAX 116
|
| Other Citations |
1998 PTD (Trib.) 3771,
2006 SCMR 496,
PLD 1995 SC 423,
2007 PTD 1533,
I.T.A. No.42/KB of 1999-2000
|
| Laws Involved |
Income Tax Ordinance, 2001,
Constitution of Pakistan, 1973
|
| Sections |
161,
236(1)(b)(3),
25
|