Law: Income Tax Ordinance, 2001

Section: 153(1),161,205,Chapterx

ORDER Through these two appeals the taxpayer has assailed impugned order No.451 & 452/2015 dated 10.02.2015 passed by the learned CIR(A-III) Rawalpindi. As per facts proceedings in the case of taxpayer were started for alleged non deduction of withholding tax on the purchase of animals (cows and goats) which were supplied to an NGO namely HELP IN NEED. The Inland Revenue Officer (IRO) Withholding Taxes, RTO Rawalpindi found that the taxpayer had made supplies of animals valuing Rupees 55,650000 in tax year 2012 and Rs 41,015,000 in 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. Statedly no reply was filed and the proceedings were concluded on 30.04.2014 by way passing order u/s 161/205 and liability of the taxpayer on this account was worked out in the fallowing manner. Tax year 2012 80% of purchase price of 1050 cows, each valuing 53000 Rs. 44,520,000 Tax @ 3.5 % Rs. 1,558,200 Default surcharge Rs. 511,004 Tax year 2013 80% of purchase price of 750 cows, each valuing 53000 RS 32,812,000 Tax @ 3.5 % Rs. 1,148,420 Default surcharge Rs. 169,903 2. The taxpayer filed appeals against these orders which were rejected by the learned CIR(A) vide his above mentioned order for the reason that the tax was deductible on the transactions under consideration and the taxpayer had failed to discharge his legal obligation. 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 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 the Ex parte order is illegal. It should be kept in mind that mere issuance of a notice is not sufficient unless it is validly served 4. That it is a golden principle of natural justice that no one should be condemned unheard and Superior Courts have laid a great emphasis on it. Guidance may be sought from the cases reported as 1994 SCMR 2232, PLD 1990 SC…

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