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THIS ORDER PASSED BY: JAVAID MASOOD TAHIR BHATTI, CHAIRMAN:---.---- 1. Through the titled appeal pertaining to Tax Year 2009, the department has assailed the impugned order dated 15-08-2012 passed by the learned Commissioner Inland Revenue (Appeals), Gujranwala. 2. Precisely the relevant facts leading for disposal of the instant appeal are that the respondent is an AOP, deriving income from running a Steel Furnace whose annual turnover for the year under consideration exceeds 50(M). Through Finance Amendment Act, 2008 AOPs having turnover of Fifty Million rupees or above in tax year 2007 and onward falls in the definition of "Prescribed Person". The taxpayer being a withholding agent was obliged to deduct Income tax and deposit into government exchequer as required u/s 153(1)(a) of the Income Tax Ordinance, 2001 which it failed to do so. The assessing authority issued different letters requiring the taxpayer to provide party-wise details and evidence of tax deduction on raw material purchased locally during the period relevant to tax year 2009. In reply the taxpayer contended that business for the year under consideration was conducted in Individual capacity as such provisions of Section 153(7) do not attract to the said taxpayer. In support of his contention the taxpayer submitted certain documents. The explanation of the taxpayer was found unsatisfactory. Finally the taxpayer was treated as taxpayer in default for non- deduction of tax u/s 153 of the Income Tax Ordinance, 2001 and total tax u/s 161/205 of Income Tax Ordinance 2001, was charged at Rs.79,40,629/-. Being aggrieved, the taxpayer went in appeal before the CIR (Appeals), who vide order dated 15.08.2012, annulled the order u/s 161/205 of the Income Tax Ordinance, 2001 passed by IRO. 3. The learned DR has submitted her arguments as per grounds of appeal. She contended that the order of the Commissioner Inland Revenue (Appeals), Gujranwala is bad in law and contrary to the facts of the case and he is not justified in holding that status of the taxpayer was an individual on the basis of the basis of return filed by member of AOP after the completion finalization of the tax proceedings u/s 161/205 of…

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