| Case ID |
2b7a1114-b95e-4b9e-8a68-af1c6543b825 |
| Body |
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| Case Number |
ITA No. 464/IB/2015 |
| Decision Date |
Jan 22, 2016 |
| Hearing Date |
Jan 18, 2016 |
| Decision |
The appeal has been disposed of in a manner that the appellant taxpayer, defined as a prescribed person under section 153(7)(j) of the Income Tax Ordinance, was found liable to withhold tax on sales made to retailers. The arguments presented by the appellant regarding sales to end consumers were not substantiated with legal grounds. The Tribunal determined that the appellant's sales were indeed to retailers, establishing liability for tax under section 236(H). However, the Tribunal recognized that certain items sold by the appellant were exempt from this provision. Consequently, the case was remanded back to the Assessing Officer for fresh adjudication to ascertain the nature of the items sold and to recalculate the tax obligations accordingly. |
| Summary |
This case revolves around the appeal filed by Sheikh Muhammad Irfan of M/s Abdul Ghaffar Traders against the decision of the Commissioner Inland Revenue, which confirmed tax liabilities under the Income Tax Ordinance, 2001. The appellant contended that he was not liable to withhold tax as his sales were directed towards end consumers; however, the Tribunal affirmed the position of the Assessing Officer, who classified the appellant as a taxpayer in default for failing to withhold the requisite tax on sales made to retailers. The legal discourse emphasized the importance of compliance with tax obligations, particularly under sections 153 and 236 of the Ordinance, which delineate the responsibilities of prescribed persons in tax collection. The Tribunal's ruling highlights the necessity for precise documentation and adherence to legal frameworks governing tax liabilities, thereby ensuring accountability in tax practices. The case underscores the significance of understanding the delineation between sales to retailers versus end consumers in the context of tax law and its implications for businesses involved in import and retail activities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
IKRAMULLAH GHAURI, JUDICIAL MEMBER,
JEHANZEB MAHMOOD, ACCOUNTANT MEMBER
|
| Lawyers |
Mr. Zahid Shafique, Advocate
|
| Petitioners |
Sheikh Muhammad Irfan, M/s Abdul Ghaffar Traders
|
| Respondents |
Commissioner Inland Revenue (Monitoring & Audit Cell) & Others, RTO, Rawalpindi
|
| Citations |
2016 SLD 139
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
153(7)(j),
161,
205,
236(H)
|