Law: Income Tax Ordinance, 2001

Section: 122(5A),169,147,120,32

(a) Income Tax----Commission---Fixed percentage---First Appellate Authority held that fixed percentage tantamount to commission---Taxpayer contended that in cases of sugar manufacturers, grain sellers, persons engaged in market for such transactions and real estate agents engaged in real estate business fix amount was not charged, rather their commission varies on the transaction and circumstances of each case---Validity---Fix percentage could not be made sole ground for treating the normal business activities into presumptive activities as there were other instances of commission income involved in the sale/purchase of sugar, grain and other commodities exchanged/sold through the commission agents who do not earn commission on a fixed basis, rather the rate was variable, negotiable and arguable---Real estate agent also did not earn a fixed commission it was mutually decided with the parties involved in selling or buying the properties. (b) Income Tax Ordinance (XLIX of 2001)---Ss. 122 (5A), 169, 147, 120 & 32---Amendment of assessment---Tax collected or deducted as final tax---Income from sale of newspapers and periodicals---Discount/ commission income---Taxpayer declared receipts as commission for the last 11 years and started claim his receipts as discount since 2001-02- to tax year 2008---Assessment was amended on the ground that taxpayer had failed to produce any material to support the change in the nature and nomenclature of business transactions; and all assessments deemed to have been made under S.120 of the Income Tax Ordinance, 2001 were considered erroneous in so far prejudicial to interest of revenue, the "discount income" was converted to "commission income" covered under presumptive tax regime for the last five years---Validity---Nature of business i.e. "discount income" from sales of newspapers and periodicals fell under the normal tax regime and not presumptive tax regime for the reason that there had been purchase and sale of newspapers and periodicals for which a large infrastructure and manpower had been employed---Nature of business where commission income was involved needed such activities and for that reason the deduction of income…

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