| Citation(s) |
|---|
| 2026 SLG 646 2026 SLD 646 = (2026) 133 TAX 204 |
Spl:Sales Tax Ref: A. 102/2024 (D.B.) Sindh High Court, Karachi C.P.L.A.905-K/2024 Muhammad Sharif v. The Commissioner Inland Revenue and others Before Supreme Court of Pakistan
Presented By: Hon'ble Chief Justice Mr. Justice Muhammad Junaid Ghaffar(Author), Hon'ble Mr. Justice Muhammad Abdur Rahman
Furqan Mohiuddin Ansari(ADVO-17092-SBC-KHE),Shams Mohiuddin Ansari(ADVO-9489-SBC-KHC)
Muhammad Sharif (Prop. of M/s.MSN Enterprises,Kar) (Applicant)
VS
The Commissioner Inland Revenue Zone-III, Karachi (Respondent)
Law: Sales Tax Act, 1990
Section: 33, 11, 11(1), 11(2), 47(5), 34, 25, 3, 47
Law: Income Tax Ordinance, 2001
Section: 133(8)
Summary
This case concerns a Special Sales Tax Reference Application challenging an order of the Commissioner (Appeals) dated 30.05.2024. The applicant raised legal questions about whether certain amounts—such as differences in declared sales, bank credits, and sales to end-users—could be treated as taxable supplies under the Sales Tax Act, 1990.
The applicant had been audited for the period July 2021 to June 2022, and discrepancies were found, including:
- Mismatch between income tax and sales tax returns
- Late filing of returns
- Unexplained bank credits
- Sales made to inactive/suspended taxpayers
A Show Cause Notice was issued, but the applicant’s response: