| Case ID |
36cbb820-13d3-4035-8fe9-7c725d7e2b3f |
| Body |
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| Case Number |
I.T.A. No. 636/IB/2012 Tax Year 2009, I.T.A. No. 6 |
| Decision Date |
Jun 04, 2013 |
| Hearing Date |
May 28, 2013 |
| Decision |
The case involved Sigma Motors Limited contesting the assessment orders regarding taxation of foreign indenting commission and other income-related matters for the tax years 2009 and 2010. The Tribunal found that the foreign indenting commission should be taxed at a rate of 5% as prescribed under relevant sections of the Income Tax Ordinance, 2001, rather than the higher rate of 10% previously assessed. The Tribunal directed the department to rectify the assessment regarding non-allowance of sales tax and federal excise duty within 7 days of the order. Consequently, the appeal for tax year 2009 regarding salary and wage add-backs was dismissed as withdrawn since relief had been granted by the department. |
| Summary |
In the appellate case of Sigma Motors Limited, the Appellate Tribunal Inland Revenue dealt with critical issues regarding the taxation of foreign indenting commissions and various income components under the Income Tax Ordinance, 2001. The key matters revolved around the appropriate tax rate applicable to foreign indenting commissions, which was contested between 5% and 10%. The Tribunal concluded that the correct taxation rate was indeed 5%, aligning with previous assessments and legislative provisions. Additionally, the Tribunal addressed the non-allowance of sales tax and federal excise duty, emphasizing the necessity for correction by the department. This case underscores the importance of adherence to established tax rates and the procedural integrity required in tax assessments. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Sigma Motors Limited,
Commissioner Inland Revenue, LTU
|
| Judges |
MR. JAWAID MASOOD TAHIR BHATTI,
FAHIM-UL-HAQ KHAN
|
| Lawyers |
Mr. Tahir Razzaque Khan, FCA,
Mr. Imran Shah, DR
|
| Petitioners |
Sigma Motors Limited
|
| Respondents |
Commissioner Inland Revenue, LTU
|
| Citations |
2013 SLD 195
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
113,
154,
113(3)(a),
122(1)
|