Law: Income Tax Ordinance, 1979

Section: 52,50,50(4)(a),143,143B

(a) Income Tax Ordinance (XXXI of 1979)---S.52---Assessee in default---Where seller himself is paying taxes as a taxpayer and withholding agent has not deducted tax from his supplies, he could not be held an assessee in default for non-deduction from such assessee. (b) Income Tax Ordinance (XXXI of 1979)---S.52---Assessee in default---When a withholding agent is held to be an assessee in default and tax has been collected from him, the Department should not ask the seller (supplier) for further payment of tax liability and their tax liability shall be settled from the amount collected from the assessee in default. (c) Income Tax Ordinance (XXXI of 1979)---Ss. 52, 50(4)(a) & 143-B---Liability of persons failing to deduct or pay tax ---Assessee in default ---Assessee a private company involved in construction work, filed statement under S.143-B of the income Tax Ordinance, 1979 which was accepted---Subsequently, on a show-cause notice, tax was charged under S.52 of the Income Tax Ordinance, 1979 on the basis of 65 % of the contractors receipts by treating the same as purchases---Order was set aside by First Appellate Authority ---Validity--­Department could not be permitted to just go for a loud estimate to say that if the assessee was doing a business he must have made some purchases and that such purchases attracted the provisions liable to deduction so as to penalize him as an assessee in default---Even if the assessee was to be held an assessee in default, the tax calculated had to be adjusted against the recipients of the amount on account of supplies where the purchases were not identifiable there was no question of any deduction and holding the assessee in default was also unnecessary- --Order to set aside by the First Appellate Authority was not considered appropriate as it had left the door for the Department and the same was cancelled by the Tribunal. 1995 PTD 614; 2000 PTD (Trib.) 2664; 1997 PTD (Trib.) 1771 and CIT v. Abbestos Cement Industries Ltd. and others 1992 SCC 904 ref. (d) Interpretation of statutes--- Mode of expression has to be interpreted according to the Legislature's will and then to discover such will in letter and spirit---One…

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