Law: Income Tax Ordinance, 2001

Section: 78,133,161,161(1)(b),205,239,239(4)

Law: Income Tax Ordinance, 1979

Section: 11(1)(b),52,50(3),50(8)(b),78,86

Income Tax Ordinance (XXXI of 1979)------.----- ------.-------Ss. 11(1)(b), 52 & 86------.-----Income Tax Ordinance (XLIX of 2001), S. 133 & 161(1)(b)------.-----Convention between the Government of Republic of Italy and Islamic Republic of Pakistan, for avoidance of Double Taxation and the Prevention of fiscal evasion with respect to Taxes on Income, Art. 7------.-----Reference------.-----Foreign Banks------.-----Repayment of loans------.-----Dispute between the parties was with regard to charging of tax on interest paid by assessees to non-resident Banks who were not chargeable to tax in Pakistan------.-----Authorities were aggrieved of order passed by Appellate Tribunal Inland Revenue------.-----Validity------.-----Non-resident Banks did not have any permanent establishment in Pakistan nor any tax demand against non-resident Banks was due under the provisions of Income Tax Ordinance, 1979------.-----When assessing officer had no authority to charge income of non-resident Banks, collection of advanced tax for adjustment under S. 50(8)(b) of Income Tax Ordinance, 1979 did not arise------.-----Assessing officer invoked provision of S. 78 of Income Tax Ordinance, 1979 and appointed two non-resident members of assessee company as agents of non-resident Banks but such action under S. 50(3) of Income Tax Ordinance, 1979 and S. 161 of Income Tax Ordinance, 2001 could not be initiated as if a person was himself liable as agent of non-resident person in terms of S.78 of Income Tax Ordinance, 1979 then he was not required to deduct any tax under S. 50(3) of Income Tax Ordinance, 1979------.-----Question of deduction of tax did not arise as the payments made to non-residents were exempted from tax------.-----High Court declined to interfere in the findings recorded by Appellate Tribunal Inland Revenue as the same were free from any legal infirmity------.-----Reference was declined in circumstances. Messrs American Express Bank Karachi v. Commissioner of Income Tax 2009 PTD 1791 and Mountains Estate Mineral Enterprises v. Commissioner of Income Tax 2008 PTD 1087 ref. THIS JUDGMENT DELIVERED BY: SHAUKAT AZIZ SIDDIQUI, JUSTICE:------.----- By means of this single…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492