| Case ID |
d5e4907c-620f-47b4-a8a9-9ae0f660782d |
| Body |
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| Case Number |
I.T.A. No. 1501/LB of 2013 |
| Decision Date |
May 19, 2016 |
| Hearing Date |
May 19, 2016 |
| Decision |
The appeal concerning the tax year 2011 was filed by the Revenue against the Order-in-Appeal No.5035 dated 08.05.2013 passed by the learned CIR(A), Faisalabad. The appellant challenged the CIR(A)'s decision to reduce the minimum tax rate under section 113 from 1% to 0.2% relying on S.R.O. 57(I)/2012 dated 24.01.2012, which was deemed applicable only for tax year 2012. The tribunal found that the taxpayer, an Association of Persons (AOP), had declared sales of Rs.49,850,800/- and income of Rs.358,950/-. The assessing officer had issued a show cause notice to rectify the assessment, and the AOP was required to pay minimum tax at 1% of the declared turnover. The CIR(A) incorrectly applied the reduced tax rate retrospectively, which the tribunal ruled was not valid as the amendment to the law was prospective. The tribunal restored the assessing officer's decision, denying the taxpayer the reduction in minimum tax. |
| Summary |
The case revolves around the Income Tax Ordinance, 2001 and specifically the provisions related to minimum tax rates applicable to rice dealers. The Appellate Tribunal Inland Revenue adjudicated on the appeal filed by the C.I.R. against the CIR(A)'s decision to reduce the minimum tax rate for the tax year 2011 based on a later S.R.O. The key issue was whether the reduction in tax rate could be applied retrospectively. The tribunal clarified that the reduction in tax introduced through S.R.O. 57(I)/2012 was not applicable to the taxpayer as they had already filed their return for that year before the S.R.O. was issued. Consequently, the tribunal vacated the CIR(A)'s order and restored the original assessment by the assessing officer, affirming the minimum tax rate of 1%. This case underscores the importance of understanding the applicability of tax laws and amendments, particularly regarding their temporal scope, and highlights the procedural necessities for tax compliance. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
CH. ANWAAR UL HAQ
|
| Lawyers |
Abdul Malik, D.R. for Appellant,
Imran Rasool for Respondent
|
| Petitioners |
C.I.R., Zone-III, RTO, FAISALABAD
|
| Respondents |
Messrs DRAZ RICE MILLS, KOT KHAIRA, JHANG
|
| Citations |
2016 SLD 1142,
2016 PTD 1820,
(2017) 115 TAX 108
|
| Other Citations |
2016 PTD 427
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
53,
113,
221,
Second Schedule, Part III, Cl. 13
|