| Case ID |
4427bdbd-8c2c-4cfd-96dc-d6a8acadcb05 |
| Body |
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| Case Number |
STA No. 299/IB/15 (Assessment year 2012-13) |
| Decision Date |
Nov 11, 2015 |
| Hearing Date |
Nov 11, 2015 |
| Decision |
The Appellate Tribunal Inland Revenue, Islamabad, upon reviewing the appeal filed by Mst. Farzana Suhail of Bismillah Electronics against the Order-in-Appeal No.325/2014 dated 22.04.2015, has thoroughly examined the case. The appeal contended that the assessing officer unjustly assumed a short payment of sales tax by the appellant, alleging violations of sections 3(1), 6, 7, 22, 23, and 26 of the Sales Tax Act, 1990. The appellant argued that as an electronics business taxpayer under the final sales tax regime, they appropriately declared both purchases and sales to align input and output sales tax, adhering to Rule 58T(5) of Chapter XIII of the Sales Tax Special Procedure Rules 2007. The Tribunal concluded that the assessing officer lacked justification in the original order, as the appellant had correctly managed their sales tax declarations in compliance with the relevant laws and regulations. Consequently, the Tribunal found that the lower authority's orders were not in consonance with the law and thus vacated them. As a result, the appeal by Mst. Farzana Suhail is allowed. |
| Summary |
In the landmark case cited as 2016 SLD 35, the Appellate Tribunal Inland Revenue in Islamabad deliberated on STA No. 299/IB/15 pertaining to the assessment year 2012-13. The appellant, Mst. Farzana Suhail of Bismillah Electronics, Rawalpindi, contested the decision made by the Commissioner of Inland Revenue (CIR), Rawalpindi, which alleged a short payment of sales tax amounting to Rs. 119,242 under sections 3(1), 6, 7, 11(2), 22, 23, and 26 of the Sales Tax Act, 1990. Represented by Advocate Mr. Aamir Ahmed, the appellant argued that as a taxpayer under the final sales tax regime, they had correctly declared matching amounts for both purchases and sales to align input and output sales tax in their returns, in compliance with Rule 58T(5) of Chapter XIII of the Sales Tax Special Procedure Rules 2007. The CIR had initially passed the impugned order based on these alleged violations, prompting the appellant to seek redress through the appellate process. However, upon further examination, the Tribunal found that the assessing officer did not have sufficient grounds to assume any violation, recognizing that the appellant had adhered to the legal requirements for sales tax declarations. Consequently, the Tribunal vacated the lower authority's order, thereby allowing the appellant's case. This decision underscores the importance of accurate tax reporting and the need for regulatory bodies to thoroughly assess compliance before imposing penalties, reflecting the judiciary's commitment to fairness and adherence to statutory provisions in tax matters. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Bismillah Electronics, Rawalpindi,
Appellate Tribunal Inland Revenue, Islamabad,
CIR, RTO, Rawalpindi
|
| Judges |
JAVID IQBAL, JUDICIAL MEMBER,
MUHAMMAD RIAZ, ACCOUNTANT MEMBER
|
| Lawyers |
Mr. Aamir Ahmed,
Mr. Muhammad Akram
|
| Petitioners |
Mst. Farzana Suhail, Bismillah Electronics, Rawalpindi
|
| Respondents |
CIR, RTO, Rawalpindi
|
| Citations |
2016 SLD 35
|
| Other Citations |
Not available
|
| Laws Involved |
Sales Tax Act, 1990
|
| Sections |
3,
3(1),
6,
7,
11(2),
22,
23,
26
|