Law: Income Tax Ordinance, 2001

Section: 148,231B,231B(2),231B(4)

Law: Constitution of Pakistan, 1973

Section: 199

(a) Income Tax Ordinance (XLIX of 2001)---.--- ---.----Ss. 231-B, 234 & 148---.---Import of motor vehicles---.---Advance tax on private motor vehicles---.---Petitioners/taxpayers impugned demand of advance tax under S. 231-B of the Income Tax Ordinance, 2001 at the time of their application for registration of imported vehicles---.---Contention of the petitioners, inter alia, was that the tax under S. 148 of the Income Tax Ordinance, 2001 had already been paid at the time of import of the said vehicles, therefore no advance tax was recoverable from the petitioners at the time of registration / transfer of ownership of said vehicles---.---Validity---.---Under S. 231-B(4) of the Income Tax Ordinance, 2001 every manufacturer of vehicles shall collect advance tax at the time of sale of vehicles and S. 231-B(4) of the Act provided an exception that the said tax shall not apply if a person produced evidence that tax under S. 231-B(3) in case of a locally manufactured vehicle or tax under S. 148 of the Income Tax Ordinance, 2001, was collected from the same person in respect of same vehicle---.---Words "person produces evidence" and "same person in respect of same vehicle" used in S. 231-B(4) of the Income Tax Ordinance, 2001 left no doubt that S. 231-B(1) of the Income Tax Ordinance, 2001 would not apply, only if registration of vehicle S. 231-B(1) of the Income Tax Ordinance, 2001 was sought in the name of same person who already paid advance tax under S. 231-B or 148 of the Income Tax Ordinance, 2001 at the time of import in respect of same vehicle---.---For registration of vehicle in name of a person who was not an importer and had not paid tax under S. 148 of the Income Tax Ordinance, 2001 the benefit of exception S. 231-B(4) Income Tax Ordinance, 2001 would not apply and subsequent purchaser shall be liable to pay advance tax under said section---.---Petitioners, in the present case, were subsequent purchasers of said vehicles and had not themselves paid tax under S. 148 of the Income Tax Ordinance, 2001 at the time of import and therefore demand of tax under S. 231-B of the Income Tax Ordinance, 2001 was not illegal---.---Constitutional petitions, were…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492