Law: Income Tax Ordinance, 1979

Section: 50,50(4)(ii),8,52,50(4)

(a) Income Tax Ordinance (XXXI of 1979)----S.50(4)(ii)---Deduction of tax at source---Expression "companies as payers" in S.50(4)(ii) of the Income Tax Ordinance, 1979---Connotation--­Companies defined as payers in S.50(4)(ii) of the Income Tax Ordinance, 1979 by itself means a "class ' of payers"---Analogy that the expression "companies as payers" appearing, in S.50(4)(ii) of the Ordinance has been used to mean a class of payers other than the companies considered as a class of payers was repelled. (b) Income Tax Ordinance (XXXI of 1979)----S.8---Powers of Central Board of Revenue---Scope---Central Board of Revenue can only issue clarification and is not empowered to give any meanings to any provisions of the statute through its own interpretation. (c) Interpretation of statutes--- ----Fiscal statute---Construction---Fiscal statute must be construed in the light of what is clearly expresses. (d) Income Tax Ordinance (XXXI of 1979)--- ----S.52 [as amended by Finance Act (IV of 1999), S.50(4)---Deduction of tax at source---Liability of persons failing to deduct or pay tax--­Interpretation of S.52 of the Income Tax Ordinance, 1979 [as amended]--­Amendment of S.52 by Finance Act, 1999---Nature---Withholding agent--­Jurisdiction to initiate proceedings against withholding agent under S.52, Income Tax Ordinance, 1979---Scope. Section 52 of the Income Tax Ordinance, 1979 is not only a deeming section but at the same time it is also a penal section because under the provisions of this section a person is made liable for payment of the amount which is not his own tax liability but the liability of another person in respect of whom he has been made a withholding agent without payment of any compensation or reward for the services which are to be rendered by him for collection and depositing of tax in this regard. However, irrespective of the nature of the section, the amendment is of a procedural nature. Through this amendment, the DCIT having jurisdiction under section 5 over the withholding agent has also been empowered to take action under section 52 of the Ordinance with regard to payments attracting the provisions of section 50(4) of the Ordinance. This amendment…

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