| Citation(s) |
|---|
| 2026 SLG 4452 = 2026 SLD 4452 |
Tax Reference No. 93-P/2024
Presented By: SYED ARSHAD ALI JUDGE
Date of hearing: 09.04.2026 Mr. Ishtiaq Ahmad (Senior), Advocate, for the petitioner. Mr. Abbas Bakhtiar, Advocate for the respondents along with Ashraf Khan DC-IR.
M/s Sher Ahmad
VS
. Commissioner of Inland Revenue, Regional Tax Office, Mardan Zone and another.
Law: Income Tax Ordinance, 2001
Section: 113, 122(9), 133
Law: Finance Act, 2021
Section: 133(8)
Facts
The petitioner, engaged in the distribution and sale of tyres, declared a turnover of Rs.36,604,963/- for Tax Year 2020. His normal tax liability was only Rs.21,267/-, whereas minimum tax under the then-existing Section 113 was calculated at Rs.549,074/-.
At the time of filing the return, Section 113 prescribed a Rs.10 million turnover threshold, so the petitioner was liable to minimum tax. However, the Finance Act, 2021 increased the threshold from Rs.10 million to Rs.100 million and expressly referred to Tax Year 2017 and subsequent years. By the time the assessment order was passed on 16.12.2021, the amended provision was already in force. Since the petitioner's turnover was below Rs.100 million, he argued that minimum tax was no longer chargeable.
Main Legal Issue
Whether the amendment made by the Finance Act, 2021, increasing the Section 113 turnover threshold from Rs.10 million to Rs.100 million, applied to Tax Year 2020 despite the amendment coming into force on 1 July 2021.