| Citation(s) |
|---|
| 2025 SLG 5097 2025 SLD 5097 = 2025 LHC 6423 |
Lahore High Court
ITR No.68485 of 2024
PRESENT; (ABID AZIZ SHEIKH) JUDGE (MALIK JAVID IQBAL WAINS) JUDGE
Date of hearing: 17.09.2025 Applicant-taxpayer by: M/s. Shahbaz Butt, Khurram Shahbaz Butt and Ch. Muhammad Ishfaq, Advocates.
Respondent-department by M/s. Mahum Shahzad and Abdul Qayyum, Advocates.
ITR No.68485 of 2024
PRESENT; (ABID AZIZ SHEIKH) JUDGE (MALIK JAVID IQBAL WAINS) JUDGE
Date of hearing: 17.09.2025 Applicant-taxpayer by: M/s. Shahbaz Butt, Khurram Shahbaz Butt and Ch. Muhammad Ishfaq, Advocates.
Respondent-department by M/s. Mahum Shahzad and Abdul Qayyum, Advocates.
Khawaja Muhammad Siddique
VS
. The commissioner Inland Revenue, Lahore, etc.
Law: Income Tax Ordinance, 2001
Section: 113(1), 120, 133, 122-5(A), 2-43(A)
Law: Sales Tax Act, 1990
Section:
TAGLINE
“Proviso to Clause 24D can restrict only Tier-1 retailers—not distributors, dealers or wholesalers; reduced minimum tax rate of 0.25% allowed where the main clause applies.â€
SUMMARY OF THE JUDGMENT
Background
- The taxpayer filed a return for Tax Year 2022 and applied reduced minimum tax @ 0.25% under Clause 24D, Part-II, Second Schedule of the Income Tax Ordinance, 2001.
- The department amended the assessment under Section 122(5A), applying 1.25% minimum tax.
- Tribunal upheld the department’s order on the basis that the taxpayer was not a Tier-1 retailer, and therefore could not claim the reduced rate.
Key Issue
Whether the taxpayer—dealer of fertilizers—must be a Tier-1 retailer to avail the benefit of reduced minimum tax u/s Clause 24D.
Court’s Findings
Clause 24D extends the concessional rate 0.25% to: