Legal Case Summary

Case Details
Case ID 202ac1c0-e442-4ca4-8774-21e3c9fa2664
Body View case body.
Case Number I.T.As. Nos. 1510/LB, 1509/LB and 1508/LB of 2020
Decision Date Jan 10, 2022
Hearing Date Dec 20, 2021
Decision The appeals filed by the taxpayer were dismissed as the taxpayer failed to establish their status as a distributor of Fast Moving Consumer Goods (FMCG). The tribunal found that the taxpayer did not provide sufficient documentary evidence to support their claim, including sales invoices or distribution agreements. Consequently, the minimum tax was rightly charged by the assessing officer at the applicable rates for the tax years 2016, 2017, and 2018. The court also clarified that household electrical appliances do not fit the definition of FMCG due to their durable nature and pricing, emphasizing the importance of distinguishing between dealers and distributors in tax law.
Summary In the case involving Naeem Rafique Bhatti against the Commissioner Inland Revenue, the Appellate Tribunal Inland Revenue addressed the status of the taxpayer as a distributor of Fast Moving Consumer Goods (FMCG). The tribunal concluded that the taxpayer failed to substantiate their claim with adequate evidence, such as sales invoices and distribution agreements. The court emphasized the distinction between FMCGs and durable household appliances, ruling that the latter does not qualify for reduced tax rates. The decision highlights the necessity of proper documentation in tax claims and reinforces the binding nature of superior court rulings on subordinate courts. This case serves as a precedent for future tax disputes and underscores the importance of compliance with tax regulations.
Court Appellate Tribunal Inland Revenue
Entities Involved Naeem Rafique Bhatti, The Commissioner Inland Revenue
Judges Zahid Sikandar, Judicial Member, Muhammad Tahir, Accountant Member
Lawyers Muhammad Ali Awan
Petitioners Naeem Rafique Bhatti, Gujranwala
Respondents The Commissioner Inland Revenue, RTO, Gujranwala
Citations 2023 SLD 41, 2023 PTD 134, (2024) 129 TAX 131
Other Citations 2018 PTD 1582, C.I.R. v. Three Star Rice Factory 2021 PTD 1
Laws Involved Income Tax Ordinance, 2001, Constitution of Pakistan, 1973
Sections 2(22A), 113, First Schedule, 189, 201