Law: Income Tax Ordinance, 2001

Section: 4A,4(1),53(2),74,114,115,148,PartV ofChapterX ofChapterXIII,PartIII oftheSecond Schedule

JUDGMENT CIVIL APPEAL NO. 1460/2013 FAISAL ARAB, J.- The respondent is a partnership firm engaged in the business of importing goods and selling them in the local markets. During the course of tax year 2011, the respondent paid advance income tax at the import stage on the value of goods which tax in terms of Section 148 of the Income Tax Ordinance, 2001 ("2001 Ordinance") had become its final tax liability for that tax year. During the same tax year, Section 4A was inserted in the 2001 Ordinance through the Income Tax (Amendment) Ordinance, 2011 dated 16.03.2011 whereby surcharge was imposed at the rate of 15% of the income tax payable under the 2001 Ordinance for the period commencing from the promulgation of the 2001 Ordinance till 30.06.2011. Section 4A of the 2001 Ordinance reads: '4A. Surcharge: - (1) Subject to this Ordinance, a surcharge shall be payable by every taxpayer at the rate of fifteen per cent of the income tax payable under this Ordinance including the tax payable under Part V of Chapter X of Chapter XIII, as the case may be, for the period commencing from the promulgation of this Ordinance, till the 30th June, 2011. (2) Surcharge shall be paid, collected, deducted and deposited at the same time and in the same manner as the tax is paid, collected, deducted and deposited under this Ordinance including Chapter X or XII as the case may be: Provided that this surcharge shall not be payable for the tax year 2010 and prior tax years and shall be applicable, subject to the provisions of sub-section (1), for the tax year 2011 only.' 2. On 12.09.2011, FBR issued Circular No.11 of 2011, relevant portion of which reads 'However, it has been decided that the tax liability for the entire T/Y (Tax Year) 2011 may not be subjected to imposition of surcharge and the same be levied on the proportionate liability for a period of three and a half months.' Thus, in terms of the Circular, the liability of surcharge was confined to a period of 3% months (16.03.2011 to 30.06.2011) and the tax liability of the tax year 2011 was to be proportionately allocated to the 3% month period. This Circular was then followed by the Federal Government's Notification SRO 977(I)…

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