Law: Income Tax Ordinance, 2001

Section: 2(52),2(37),2(41),2(52),120(1)(b),122,12 2(2),153,153(3)(b),153(7),156(1),156(3), 170

Law: Constitution of Pakistan, 1973

Section: 73(2)

Law: Income Tax Ordinance, 1979

Section: 2(16)(b)

THIS ORDER PASSED BY: M.M. AKRAM, JUDICIAL MEMBER:---.--- The titled appeal has been filed by the appellant/taxpayer against an Order No.785/2012 dated 20.12.2012 passed by the learned Commissioner Inland Revenue (Appeals-II), Islamabad for the Tax Year 2010 on the grounds as set forth in the memo of appeal. 2. Brief facts giving rise to the appeal are that the appellant is a non-resident company and a branch of Weather Ford Drilling International (BVI) Limited (WDI), a limited liability company incorporated in British Virgin Islands. The appellant commenced its operations from July 1, 2008 and is engaged in execution of contracts for drilling wells for oil and gas exploration companies. The appellant filed its income tax return for the tax year 2010 on May 16, 2011 whereby taxable income for the year was declared at Rs.341,401,803/- after Workers Welfare Fund (WWF) liability of Rs.5,417,661/-. This income was adjusted against brought forward losses of (Rs.3,726,187,835/-) and balance loss of (Rs.3,384,786,032/-) was carried forward to the tax year 2011. The following taxes were paid and deducted at source and subsequently were claimed as refundable:- Tax paid/deducted at source:- Rupees - Imports 10,776,315 - Services 141,147,446 151,923,761 Less: WWF liability 5,417,661 Balance refundable 146,506,136 The return so filed by the appellant was treated to be an assessment order under section 120(1)(b) of the Income Tax Ordinance, 2001 (the Ordinance).The appellant taxpayer filed refund application under section 170 of the Ordinance on 02.02.2012 by claiming refund of Rs.146,506,136/- which was disposed of by the Assessing Officer vide order under section 170 of the Ordinance on 08.06.2012 inter alia observing that:- S.No. Tax deducted/paid claimed as per return on account of Amount Amount verified Remarks 1. - Imports 10,776,315 8,635,857 - 2. - Services 141,147,446 - Not refundable by virtue of section 153(3)(b). Less tax paid - 5,417,661 - Net amount refundable - 3,218,196 - Being aggrieved of the order passed by the Assessing Officer, the appellant preferred an Appeal before Commissioner Inland Revenue (Appeals-II), Islamabad, who decided the case against the…

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