Law: Income Tax Ordinance, 2001

Section: 2(13AA),2(22A),113,122(5A)

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001)----Sections: 2(13AA), 2(22A), 113 122(5A) - Minimum tax on the income of certain persons - Fast moving consumer goods - Wholesale and retail sale of wine/alcoholic drinks - Failure to pay minimum tax @1.50% of the declared turnover instead of 0.25% - Show Cause Notice - Levy of tax by the ADCIR at the rate of 1.50% of the declared turnover - Confirmation of the impugned order by the CIR(A), in appeal - Challenge to -FACTSBrief facts of the case as gathered from the available record are that the taxpayer is engaged in the business of wholesale and retail sale of wine/alcoholic drinks.ADCIR observed that the taxpayer has failed to pay the due and correct amount of minimum tax u/s. 113 the ADCIR issued notice u/s. 122(5A) and concluded the proceeding. He levied minimum tax under section 113, at the rate of 1.50% of the declared turnover.The Taxpayer filed an appeal before the CIR(A), who confirmed the impugned order. The Appellant/Taxpayer has preferred this titled appeal before Tribunal.ARGUMENTSA.R vehemently contended that wine is covered within the definition of Fast-Moving Consumer Goods. Therefore, the minimum tax u/s 113 of the Income Tax Ordinance, 2001 should have been charged by the ADCIR at 0. 25%.On the other hand, the learned DR strongly apposed the appeal and contended that the orders of both the below authorities are well within the frame work of law and carry no illegality, infirmity and irregularity in them. Therefore, he prayed that the appeal be dismissed.DECISIONIncome Tax Ordinance, 2001 (XLIX of 2001) - Sections: 2(13AA), 2(22AA), 113 122(5A) - Amendment of assessments - Sale of wine/alcoholic drinks - Charge of minimum tax @ 1.50% instead of 0.25% - Addition - Scope - In reference to the observation of the Learned Karachi Bench relied upon by the taxpayer to augment his case, we believe that there has been lack of appreciation by the bench of the above grounds that excludes Alcoholic beverages from the privilege of reduced rate of minimum tax. Hence on the basis of deliberation made supra we respectfully disagree with the observation of learned Karachi Bench and we hold that alcoholic beverages do…

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