| Case ID |
3bad93b7-0e7e-491c-b943-03c67762823d |
| Body |
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| Case Number |
MA(Stay) No. 827/LB of 2014 and I.T.A. No. 1845/LB |
| Decision Date |
Jul 14, 2014 |
| Hearing Date |
May 15, 2014 |
| Decision |
The appeal of the taxpayer was accepted. The Appellate Tribunal found that the rectification order passed under section 221 of the Income Tax Ordinance, 2001 was beyond the scope of rectification. The Tribunal ruled that only mistakes apparent on the record could be rectified, and the issues raised involved legal and factual inquiries that exceeded the rectification process. Furthermore, the Tribunal determined that the taxpayer's revised return, filed in accordance with the law, had to be accepted and treated as an amended assessment order. Consequently, the previous orders of the Deputy Commissioner and the CIR(A) were annulled. |
| Summary |
This case revolves around the taxation of a distributor's income under the Income Tax Ordinance, 2001, particularly focusing on the minimum tax provisions. The taxpayer, a distributor, contested the rectification of their income tax assessment which was deemed incorrect by the revenue authorities. The Appellate Tribunal emphasized that the rectification process must only address obvious mistakes and not involve complex legal interpretations or factual disputes. The Tribunal highlighted the importance of recognizing the taxpayer's right to revise their return without arbitrary rejection by the tax authorities. The decision reinforces the principle that a distributor's income, derived primarily as commission, should be treated distinctly from traditional sales turnover, aligning with established judicial precedents. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Messrs Uni-Lever Pakistan,
Messrs Pakistan Tobacco Company, Limited
|
| Judges |
CH. ANWAAL UL HAQ, JUDICIAL MEMBER,
MUHAMMAD RAZA BAQIR, ACCOUNTANT MEMBER
|
| Lawyers |
Naeem Munawar for Appellant,
Ms. Misbah Nawaz, D.R., for Respondent
|
| Petitioners |
Messrs, CH. MUSHTAQ AND CO., JAIL ROAD, SIALKOT
|
| Respondents |
C.I.R, R.T.O., SIALKOT
|
| Citations |
2015 SLD 1297,
2015 PTD 1926
|
| Other Citations |
2012 PTD (Trib.) 170,
2013 PTD (Trib.) 1749,
2004 PTD (Trib.) 2491,
2008 SCMR 204,
2008 PTD 253,
2011 PTD (Trib.) 901,
2009 PTD (Trib.) 521,
2013 PTD 508 (H.C.S.),
I.T.As. Nos. 463, 464/LB of 2010 dated 1-12-2011,
I.T.As. Nos. 1, 2/IB of 2014 dated 14-3-2014,
2006 PTD 1699,
I.T.A. No. 238/LB of 2003 dated 16-8-2004,
I.T.As. Nos. 4469-4470/LB of 2002 dated 6-5-2004,
2003 PTD 869
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
113,
114,
114(6),
120,
122,
122(3),
221
|