| Case ID |
39a4b4be-d2e2-4a7f-9604-539b78434932 |
| Body |
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| Case Number |
NEW ITA No. 448/IB/2015 |
| Decision Date |
Jun 09, 2016 |
| Hearing Date |
May 16, 2016 |
| Decision |
The Appellate Tribunal Inland Revenue allowed the appeals filed by M/s. Dass Associates, overturning the earlier orders of the learned CIR(A) which had found the taxpayer liable for tax deductions on animal purchases. The Tribunal noted that the assessing officer failed to identify specific transactions that were liable for withholding tax and that the taxpayer's cash purchases did not exceed the threshold for tax deduction. The Tribunal emphasized that the impugned orders were based on presumptions and estimates, which are legally insufficient. The case was remanded with a directive to reassess the tax liability considering the facts and circumstances of the case, particularly the nature of the transactions and the exemptions applicable due to the locations of the purchases. |
| Summary |
In the case at hand, M/s. Dass Associates challenged the orders issued by the CIR regarding the non-deduction of withholding tax on the purchase of animals intended for supply to an NGO. The taxpayer argued that the assessing officer did not adequately consider the nature of the transactions, particularly that the purchases were made in cash and did not exceed the prescribed threshold for tax deduction. The Tribunal found that the assessing officer's reliance on estimates and presumptions was flawed, leading to a decision in favor of the taxpayer. The ruling emphasized the importance of adhering to legal requirements regarding tax deductions and highlighted the need for the tax authorities to provide clear evidence of tax liability. The case underscores the complexities involved in tax law, particularly concerning cash transactions and the applicability of withholding tax exemptions. Keywords: income tax, withholding tax, tax exemption, cash purchases, Appellate Tribunal, tax liability, legal obligation. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
HELP IN NEED
|
| Judges |
SHAHID MASOOD MANZAR,
MUHAMMAD RIAZ
|
| Lawyers |
Ch. Naeem.ul.Haq,
Mr. Masood Akhter
|
| Petitioners |
M/s. Dass Associates
|
| Respondents |
The CIR, RTO, Rawalpindi
|
| Citations |
2016 SLD 616
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
153(1),
161,
205
|