Law: Income Tax Ordinance, 2001

Section: 161,205,218,Chapterx

ACCOUNTANT MEMBERVTHIS ORDER PASSED BY: CH. SHAHID IQBAL DHILLON, JUDICIAL MEMBERS:---.---THIS ORDER PASSED BY: CH. SHAHID IQBAL DHILLON, JUDICIAL MEMBERS:---.--- Through these appeals the taxpayer has assailed order No. 334 335/2014 dated 31.12.2014 passed by Commissioner Inland Revenue Appeals III (CIR-A) Rawalpindi. As per facts proceedings in the case of taxpayer were started for alleged non deduction of withholding tax. The taxpayer is a pharmaceuticals company engaged in manufacture/Sale of medicines. The Inland Revenue Officer (IRO) Withholding Taxes, RTO Rawalpindi found that the tax payer had claimed P L expenses of Rs 14,716,925 for tax year 2012 and Rs / RS 37,439,622 for tax year 2013 on which Withholding Tax was deductible but the same was not so deducted. He accordingly issued notice to the taxpayer seeking reply on this issue. Staidly no reply was filed and the proceedings were concluded on 29.09.2014 by way passing order u/s 161/205 and liability of the taxpayer on this account was worked out in the following manner. Tax year 2012 Tax year 2013 P L expenses 14,716,925 37,439,622 Tax to be deducted @ 3.5% 515,092 1,310,386 30% not subject to withholding Tax 154,528 303,116 Balance payable 360,564 917,270 2. The taxpayer filed appeals against these orders which were rejected by CIR(A) vide his above mentioned order for the reason that the same were time-barred. The Tax payer has filed second appeals before this forum on the fallowing grounds. (Common for both the years). Grounds of Appeal. 1) That both the orders of Learned Officer Inland Revenue Regional Tax Office Rawalpindi as well as the order of CIR(A) is bad in the eyes of law and contrary to the facts and Circumstances of the Case. 2) That the order u/s 161/205 is illegal void ab-intio and without jurisdiction. 3) That it is very well settled law, limitation starts running from date of service of order on the Taxpayer, appellant for the first time, upon his application obtained certified copy on 2.12.2014 and filed appeal on 18.12.2014 within prescribed period of 30 days. 4) That the Ex-parte order is illegal. It should be kept in mind that mere issuance of a notice is not sufficient unless…

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