| Citation(s) |
|---|
| 1999 SLG 4 1999 SLD 4 1999 PTD 14 |
Income Tax Appellate Tribunal
I.T.As. Nos.749/LB and 1823/LB of 1997, decision dated:27-05-1998, hearing DATE : 26-05-1998
KHAWAJA FAROOQ SAEED, JUDICIAL MEMBER AND INAM ELLAHI SHEIKH, ACCOUNTANT MEMBER
Muhammad Iqbal Hashmi for Appellant (in I.T.A. No. 749/LB of 1997).Ahmad Kamal, D.R. for
Respondent (in I.T.A. No. 749/LB of 1997).Ahmad Kamal, D.R. for Appellant (in T.A. No. 1823/LB of 1997).Muhammad Iqbal Hashmi for
Respondent (in T.A. No. 1823/L
I.T.As. Nos.749/LB and 1823/LB of 1997, decision dated:27-05-1998, hearing DATE : 26-05-1998
KHAWAJA FAROOQ SAEED, JUDICIAL MEMBER AND INAM ELLAHI SHEIKH, ACCOUNTANT MEMBER
Muhammad Iqbal Hashmi for Appellant (in I.T.A. No. 749/LB of 1997).Ahmad Kamal, D.R. for
Respondent (in I.T.A. No. 749/LB of 1997).Ahmad Kamal, D.R. for Appellant (in T.A. No. 1823/LB of 1997).Muhammad Iqbal Hashmi for
Respondent (in T.A. No. 1823/L
Law: Income Tax Ordinance, 1979
Section: 80C,50(4),99(3)&ThirdSched,R,8(5)
(a) Income Tax Ordinance (XXXI of 1979)---Ss.80-C, 50(4), 99(3) & Third Sched., R.8(5)---Deduction of tax at sources---Refund---Buy and lease back arrangement between assessee and Leasing Company---Deduction of tax by Leasing Company under S.50(4) of the Income Tax Ordinance, 1979---Claim of refund by assessee on the ground that transaction was neither sale nor supply, was rejected by the Assessing Officer treating same as final discharge of tax liability---Order of Assessing Officer was set aside by the First Appellate Authority with the observation that buy back arrangement between Leasing Company and assessee wag not covered under the definition of sale---Validity---View of the First Appellate Authority was upheld by the Appellate Tribunal on the ground that deduction was not covered under S.50(4) of the Ordinance and provision of S-80-C of the Ordinance was also not applicable---Assessing officer was directed to issue refund of tax deducted on the sale and lease back transaction. (b) Words and phrases--- ------ Sale" and "supply" ---Meanings elaborately discussed and distinction between the two expressions highlighted. (c) Income Tax Ordinance (XXXI of 1979)--- ----S.8---Functions of C.B.R.---Restriction on powers of C.B. A.---C.B.R. is neither vested with the right to create a charge nor it holds any place in the judicial hierarchy ---C.B.R. has no power to issue circular to withhold tax in the case of sale transaction. 1996 PTD (Trib.) 1013 rel. ORDER KHAWAJA FAROOQ SAEED (JUDICIAL MEMBER).---The assessee a private limited company, filed its statement under section 143-B of the Income Tax Ordinance, 1979 being exporter covered under section 80-CC. The assessee also made a claim of refund amounting to Rs.30,81,275 earlier deducted by leasing/Modaraba companies namely NDFC, FCM and IML on buy back arrangement as per value of the sale invoices from the appellant on machinery which was imported by the impugned company and then transferred to the leasing company. The machinery subsequently was leased hack to the impugned Company. Other facts which require consideration as narrated by learned C.I.T. are as follows:--- "The brief facts of the case are that…
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