Law: Income Tax Ordinance, 2001

Section: 161,236(1)(b)(3)

Law: Constitution of Pakistan, 1973

Section: 25

[Income Tax Ordinance (XLIX of 2001)]......Sections 161 & 236(1)(b)(3)---Failure to pay tax collected or deducted---Pay phone cards---Prepaid phone cards---Tax was levied under S. 161 of the Income Tax Ordinance, 2001 declaring the assessee as defaulter for not withholding the tax @ 10% on sale of payphone cards---First Appellate Authority found that prepared telephone cards which were subject to withholding collection of tax under S. 236 of the Income Tax Ordinance, 2001 were different in character from payphone cards---Validity---Held: payphone cards relevant to various public call offices (PCOs) of the assessee's companies were not liable to action under S.236(1)(b)(3) of the Income Tax Ordinance, 2001 withholding tax. I.T.As. Nos.153/IB to 156/IB of 2008; I.T.As. Nos.107/IB to 109/IB of 2007; I.T.As. Nos. 243/IB to 244/IB of 2007; I.T.As. Nos.118/IB to 120/IB of 2007; I.T.As. Nos. 99/IB to 101/IB of 2007; Oxford Encyclopedic English Dictionary 1991 Edition and 2008 PTD (Trib.) 442 rel. 1998 PTD (Trib.) 3771; (1948) 16 ITR Suppl. 101 HL; The Black's Law Dictionary 7th Edn. and 1993 SCMR (sic) ref. (b) Income Tax Ordinance (XLIX of 2001) S. 2(41)---Permanent establishment---Assessee was `permanent establishment' of non-resident in Pakistan as it was proved that assessee had its office and telephone numbers in Pakistan---Assessee fell under the provisions of S.2(41) of the Income Tax Ordinance, 2001 and was termed as `permanent establishment'. (c) Income Tax Ordinance (XLIX of 2001) S. 153---Payment of goods and service---Payment outside Pakistan---Import of equipment---Withholding tax---Payment having been made outside Pakistan, it was not liable to deduction of tax on import of equipment---Order of First Appellate Authority was upheld by the Appellate Tribunal. 1999 PTD (Trib.) 2515 rel. Per Jawaid Masood Tahir Bhatti, Judicial Member, agreeing with Javed Iqbal, Judicial Member (d) Income Tax Appellate Tribunal Member of Appellate Tribunal---Difference of opinion---One member had no authority to differ from the conclusion drawn by the other which was based on the earlier decisions of the Appellate Tribunal having similar set of facts more so when one…

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