| Case ID |
2093f867-c6f5-4274-b831-b457191ca513 |
| Body |
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| Case Number |
Civil Appeals Nos. 1314 to 1337 of 2014 and Civil |
| Decision Date |
Dec 19, 2023 |
| Hearing Date |
Dec 19, 2023 |
| Decision |
The Supreme Court of Pakistan allowed the appeals against the judgments of the Peshawar High Court which had favored the taxpayers. The court held that the Income Tax Ordinance, 2001 was not applicable to the Federally Administered Tribal Areas (FATA) where the respondents operated their petrol pumps. The court emphasized that the obligation to deduct tax under Section 156A was on the seller of petroleum products, and since the sales occurred outside FATA, the income derived by the respondents was subject to taxation under the Ordinance. Consequently, the claims for refund of tax deducted were rejected as they could not demonstrate that their taxable income was not derived from areas where the law was enforceable. |
| Summary |
The case centers around the application of the Income Tax Ordinance, 2001, specifically Section 156A, concerning the sale of petroleum products by filling stations in FATA. The Supreme Court ruled that the Ordinance did not extend to FATA, and thus, the tax obligations outlined in the Ordinance were not applicable. As a result, the claims for tax refunds made by the petrol pump operators were deemed invalid. This decision highlights the complexities surrounding tax laws in regions with differing legal jurisdictions and the importance of understanding where tax obligations arise. The ruling serves as a precedent for similar cases where the jurisdiction of tax laws is questioned, particularly in areas like FATA that have unique legal standings. This case is significant for tax practitioners, policymakers, and businesses operating in such regions. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
Sardar Tariq Masood, ACJ,
Syed Mansoor Ali Shah,
Athar Minallah
|
| Lawyers |
Ghulam Shoaib Jally, Advocate Supreme Court,
Syed Rifaqat Hussain Shah, Advocate-on-Record,
Zulfiqar Khalid Maluka, Advocate Supreme Court,
Junaid Akhtar, Advocate Supreme Court
|
| Petitioners |
Chief Commissioner/Commissioner IR Zone-II/Zone-III, RTO, Peshawar
|
| Respondents |
Messrs Akbar Khan Filling Station and Others
|
| Citations |
2024 SLD 2941,
2024 SLD 858
|
| Other Citations |
C.I.T. v. Gul Cooking Oil and Vegetable Ghee (Pvt.) Ltd. 2008 PTD 169
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
156A
|