| Case ID |
202ac1c0-e442-4ca4-8774-21e3c9fa2664 |
| Body |
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| 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
|