Law: Income Tax Ordinance, 2001

Section: 150,161

Income Tax Ordinance (XLIX of 2001)---Ss. 150 & 161---Liability of persons failing to deduct or pay tax---Assessee in default---Scope---Charge of additional tax for failure to deduct and pay tax---Tax-payer had been treated as assessed in default on the allegation that deduction was not made in accordance with law---Contract had been executed; and the person responsible for making payment was a third person who was making payments on behalf of the contracting parties---In the present case assessee in default had been treated the contracting party i.e. the company, whereas person responsible for making payment had to deduct the tax; and he could only be treated as assessee in default---Default had to be established by the Assessing Officer in clear terms, which was missing in the present case---Assessing Officer had not confronted the assessee for any default after receiving the reply/information from the assessee, which defect had made the order void---Assessing Officer, could only hold the Principal Officer or person responsible for making payment as assessee in default---Order passed under Ss.52/86 of repealed Income Tax Ordinance, 1979 was not maintainable in the eyes of law, which was cancelled by upholding the order of first Appellate Authority. 2012 PTD 122; 2000 PTD 3396; PLD 2008 SC 779 and 2012 PTD 122 (Trib.) ref. ORDER MUHAMMAD NAWAZ BAJWAH (JUDICIAL MEMBER).---The titled appeal pertaining to assessment year 1993-1994 has been preferred at the instance of the department. 2. Brief facts giving rise to this appeal are that order under section 52/86 of the repealed Ordinance, was cancelled by this Tribunal by holding that limitation for rectification is applicable to the order of 52/86. The department filed reference application in the Hon'ble Lahore High Court wherein order of this Tribunal was confirmed. On further appeal before the Hon'ble Supreme Court the order was remanded by the Honourable Supreme Court with the following directions:--- C.A. Nos. 1111 to 1127 and 1435 to 1488 of 2008 and 229 of 2011 14. The appeals preferred on behalf of Income Tax have been examined and the same are accepted and order impugned set aside for the reasons…

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