Law: Income Tax Ordinance, 2001

Section: 120,161,166,120(1)(b),122,153,155,205,12 2(1)

Income Tax Ordinance (XLIX of 2001)--Ss. 161, 166, 120(1)(b), 122, 153, 155 & 205---Income Tax Ordinance, (XXXI of 1979), S.52---Failure to pay tax collected or deducted---Assessee in default--Assessment finalized was amended, later on, order was passed under Ss.161/205 of the Income Tax Ordinance, 2001 treating the assessee in default and imposing additional tax for non-compliance of S.153 of the Income Tax Ordinance, 2001 on the ground that assessee, while making certain payments in the fixed assets like computers, furniture and vehicles etc. had not withheld the tax---Contention of the assessee company was that fixed assets was purchased from its sister concern and tax was rightly not deducted, as the provisions of S.153 of the Income Tax Ordinance, 2001 were not attracted upon the transactions of fixed assets---Assessment was made under Ss.161/205 of the Income Tax Ordinance, 2001 instead of making order under S.122 of the Income Tax Ordinance, 2001 by amending the order as Taxation Officer had a right to amend the order---Order in field was illegal and against the spirit of provisions of S.122 of the Income Tax Ordinance, 2001 and needed to be declared as null and void---Assessment order under S.122(1) of the Income Tax Ordinance, 2001 had been passed on 26-6-2006 and assessee had been declared as taxpayer in default on 10-1-2007, which was against the law---Order was cancelled by the First Appellate Authority---Considering the factual as well as legal position, Appellate Tribunal held that First Appellate Authority had rightly cancelled the assessment order and did not interfere in the order of First Appellate Authority---Departmental appeal was dismissed. 1999 PTD 4028; 2006 PTD 1888; 2002 PTD 2705; 2005 PTD 1303 (Trib.) and 2003 PTD 1167 ref. THIS ORDER PASSED BY : JAWAID MASOOD TAHIR BHATTI, (JUDICIAL MEMBER).---Through this appeal, the appellant-Department has objected the impugned order of the learned CIT(A), dated 8-5-2007 for the Tax year, 2005 on the following sole ground: (2) That CIT(A) was not justified to cancel order under section 52 as the purchases made by the taxpayer falls under the supply and these were liable to deduction of tax…

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