| Citation(s) |
|---|
| 2025 SLG 1830 2025 SLD 1830 |
STA No. 633/KB/2024
PRESENT: MR. FAKHAR-UL-ZAMAN AKHTAR, MEMBER AND MR. SHAHID MEHMOOD SHEIKH, MEMBER
Appellant by: Syeda Ayesha Mehmood & Mr. Mubashir Abid, Advocates.
Respondent by: Mr. M. Masood Ahmed Gorsi, DR & Mr. Javed Nawab, DR. Date of hearing: 25.02.2025. Date of order: 05.05.2025
M/S. POWER CEMENT LTD., KARACHI......APPELLANT
VS
DCIR, ZONE-V, LTO, KARACHI......RESPONDENT
Law: Income Tax Ordinance, 2001
Section: 153(1)(b)
Law: Sales Tax Act, 1990
Section: 7
SUMMARY:
The Appellant, M/s. Power Cement Limited, challenged Order-in-Original No. 10/197 dated 29.04.2024 passed by the Deputy Commissioner Inland Revenue (DCIR), Large Taxpayer Office, Karachi under the Sales Tax Act, 1990. The dispute arose over disallowance of input tax amounting to Rs.14,686,443 related to purchases from M/s. Al-Junaid Impex, a supplier who was later blacklisted. The department also imposed penalties under Sections 33(5) and 33(11)(c) and levied default surcharge under Section 34. The DCIR alleged that the invoices were fake and used to illegitimately claim input tax.
The Appellant argued that: