Law: Income Tax Ordinance, 2001

Section: 161,161(1),161(IB),182,205,206,221,221(4 )

Law: Constitution of Pakistan, 1973

Section: 4,10A

INCOME TAX ORDINANCE, 2001 (XLIX OF 2001)---Sections: 161, 161(1), 161(IB), 182, 205, 206, 221 & 221(4) - Constitution of Pakistan, 1973, Articles 4 & 10A - Failure to pay tax collected or deducted - Offences and penalties - Default surcharge - Rectification of mistakes - Applicant is a public limited Company - Failure to deduct tax being a withholding agent - Passing of order by the DCIR u/s 161, 182 & 205 - CIR(A), confirmed the treatment of DCIR, meted out to the appellant - Validity - FACTS The brief facts of the case are that the appellant is a public limited company. Being a limited company, the appellant is also designated as a withholding agent. After obtaining the details, and on the basis of those, the DCIR completed monitoring proceeding and passed order u/s.161/182/205 of the Income Tax Ordinance, 2001. The Appellant/Taxpayer being dissatisfied with the treatment of DCIR, preferred an appeal before Learned CIR(A), who confirmed the order of the DCIR. Hence, this appeal has been filed before this forum. ARGUMENTS Learned AR vehemently argued his case and stated that the DCIR was not justified in finalizing the order u/s. 161/182/205 of the Income Tax Ordinance 2001 as the predecessor of the DCIR had already passed an order u/s 161/205. Hence he contended that since the same order on the same issue has been already passed, the current order is barred by the principle of res judicata which prevents subsequent adjudication on the same issue and on the same grounds. On the other hand, the Learned DR strongly supported the orders of the Learned CIR(A) and DCIR. DECISION (a) The DCIR instead of dropping proceeding passed an illegal order - The DCIR knowingly and willfully acted illegally and arbitrarily, and passed an illegal order instead of dropping the proceeding as soon as prevalence of a previous order was brought to her knowledge, in keeping with the principle of res judicata and to avoid double assessments as deprecated by the courts. If she felt the need to still continue, should have taken recourse of the rectification procedure provided by the law and invoked jurisdiction u/s. 221 of the Income Tax Ordinance, 2001. (b) The DCIR…

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