| Case ID |
1f19d1b2-29c0-433b-9910-e3b02b75a193 |
| Body |
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| Case Number |
I.T.As. Nos.878/LB and 879/LB of 2000 |
| Decision Date |
Mar 31, 2003 |
| Hearing Date |
Mar 11, 2003 |
| Decision |
The case revolves around the applicability of tax withholding under the Income Tax Ordinance, particularly Sections 50(4) and 52. The Appellate Tribunal held that the appellant, a private limited company, failed to deduct tax from payments made to third-party manufacturers of cloth for exports. The Tribunal found that the exemptions claimed by the appellant were not applicable as they did not qualify as 'self-manufacturers.' The decision emphasized the necessity for the assessing officer to scrutinize individual payments for tax withholding rather than applying a blanket approach. Consequently, the appeals were rejected, affirming the department's findings that the appellant was in default of tax obligations. |
| Summary |
In the significant case of I.T.As. Nos. 878/LB and 879/LB of 2000, the Appellate Tribunal Inland Revenue delivered a ruling on March 31, 2003, concerning tax deductions under the Income Tax Ordinance of 1979. The case focused on the obligations of a private limited company that had outsourced the manufacturing of cloth to third parties for export. The tribunal highlighted the importance of understanding the distinctions between self-manufactured exports and outsourced manufacturing in relation to tax exemptions. The tribunal's decision underscored that the appellant could not claim exemptions under Section 50(4) since they were not the manufacturers of the cloth exported. This ruling is crucial for businesses engaging in outsourcing and provides clarity on tax responsibilities. The decision is relevant in the context of the evolving landscape of tax regulations and the need for businesses to comply with statutory requirements, ensuring that they are well-informed about their tax obligations to avoid penalties. The key takeaway is that thorough documentation and compliance with tax laws are vital for companies involved in manufacturing and exporting goods. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
EHSAN UR REHMAN,
MUHAMMAD MUNIR QURESHI
|
| Lawyers |
Hamid Masood, F.C.A.,
Anwar Ali Shah, D.R.
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2003 SLD 232,
2003 PTD 2586,
(2003) 88 TAX 35
|
| Other Citations |
2000 PTD (Trib.) 466,
2001 PTD (Trib.) 1040,
2001 PTD (Trib.) 755,
I.T.A. No.882/LB of 2000
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
50,
52,
50(4),
52S.R.O.368(I)/94,
86
|