| Case ID |
1f7c81e4-9cea-4b38-8f62-6a918f7d81b1 |
| Body |
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| Case Number |
ITA No. 946-KB of 2023 |
| Decision Date |
Nov 07, 2023 |
| Hearing Date |
Sep 04, 2023 |
| Decision |
In this case, the Appellate Tribunal Inland Revenue decided that the appellant, a manufacturer-cum-exporter, was not liable to deduct tax on the goods sold in Pakistan under section 153 of the Income Tax Ordinance, 2001. The Tribunal noted that the appellant had previously faced adverse decisions from the Commissioner Inland Revenue (Appeals) regarding the alleged non-deduction of income tax. The Tribunal found that the appellant's local sales were below the threshold of 5% of total sales, qualifying them for exemption as per Clause 45 of the Second Schedule to the Ordinance. The Tribunal emphasized the importance of fair treatment by tax authorities and noted that arbitrary assessments without proper identification of liable parties were unjust. Consequently, the Tribunal set aside the orders of the lower authorities and allowed the appeal, affirming the appellant's position as compliant with tax obligations. |
| Summary |
This case revolves around the interpretation of tax obligations for manufacturers-cum-exporters under the Income Tax Ordinance, 2001. The Appellate Tribunal Inland Revenue ruled in favor of the appellant, determining that they were not required to deduct tax on local sales that constituted less than 5% of their total sales. The legal arguments presented highlighted the significance of adhering to established exemptions in fiscal law, particularly those detailed in Clause 45 of the Second Schedule to the Ordinance. The Tribunal's decision reinforces the principle that tax authorities must act justly and transparently, ensuring that taxpayers are not subjected to arbitrary classifications that could undermine their legal rights. The ruling also serves as a critical reference point for similar cases, emphasizing the need for clear identification of tax liabilities and the importance of procedural fairness in tax assessments. Key terms include 'Income Tax Ordinance', 'manufacturers-cum-exporters', 'tax exemptions', and 'procedural fairness'. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Commissioner Inland Revenue,
M/s. Meskay & Ferntee Trading Co. (Pvt) Ltd
|
| Judges |
Sardar M. Ajaz Khan,
Mr. Shahid Mehmood Sheikh
|
| Lawyers |
Ms. Riffat Naeem Jan,
Mr. Abdul Karim
|
| Petitioners |
M/s. Meskay & Ferntee Trading Co. (Pvt) Ltd
|
| Respondents |
Commissioner Inland Revenue, (Appeals-VII), CTO, Karachi
|
| Citations |
2024 SLD 3787,
2024 SBLR 295
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
129,
153,
153(1),
161(1),
161(1A),
205
|