| Citation(s) |
|---|
| 2025 SLG 1805 2025 SLD 1805 = 2025 PTD 650 |
Tax Reference No. 22-P/2013. Date of hearing: 04.02.2025.
PRESENT;SYED ARSHAD ALI, JUSTICE AND SYED MUDASSER AMEER, JUSTICE
Mr. Ghulam Shoib Jally, Advocate, for the appellant. Mr. Issa Ali Qazi, Advocate, for the respondent
COMMISSIONER OF INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR.
VS
M/S SWAT CERAMICS COMPANY (PVT) LTD, SHAIDU NOWSHERA
Law: Income Tax Ordinance, 2001
Section: 133,133(5),153,153(1),153(1)(c)
Law: Income Tax Act, 1922
Section: 22
SUMMARY;
The Commissioner Inland Revenue filed a Reference under Section 133 of the Income Tax Ordinance, 2001 against the order of the Appellate Tribunal Inland Revenue dated 17.10.2012. The dispute pertained to whether the Respondent (taxpayer) was obligated to deduct withholding tax under Section 153(1)(c) of the Ordinance on the payment of Rs. 2,730,000/- made to the DHA Country & Golf Club as membership fee.
The department argued that the payment fell within the scope of “services†under Section 153(1)(c). The taxpayer contended that the payment was purely for acquiring membership and not for any service as defined under Section 153, and hence no tax was deductible.