Law: Income Tax Ordinance, 1979

Section: 80,80C,59,61

(a) Income Tax Ordinance (XXXI of 1979)----Ss.80-C, 59 & 61---Constitution of Pakistan (1973), Art.23, 4 & 8--C.B.R. Circular No.15 of 1980, dated 26-6-1980---C.B.R. Circular No.26 of 1980 dated 12-10-1980--Tax on income of certain contractors and importers---Self-assessment----Commission agent---Franchisee---Assessing Officer OUSTED the case from Self-Assessment Scheme due to reason that the notices claiming for short documents had not been complied with within the prescribed time limit and commission receipts fell under the ambit of S.80-C of the Income Tax Ordinance, 1979 as provided under subsection (2)(a)(ia) of the Self-Assessment Scheme---Assessments were finalized under S.62 of the Income Tax Ordinance, 1979---Assessee contended that nature of business had not been properly appreciated as the assessee was not a commission agent but as a Franchisee rendering services to his company as was running a Franchise to solicit customers for company's customers subject to the terms and conditions set out in the agreement and was merely a franchisee not an agent of the company and as such his relationship with the company was not that of a commission agent---Validity---Assessee placed on record a copy of invoices raised to company to support his contention that the nature of receipts were services rather than commission, which revealed that assessee was generating revenue line rent, retention, upgradation, international roaming etc., and all such transactions were out of purview of definition of `commission' as revenue in this regard had not been generated from the sale of goods but by providing services---Transactions of the assessee fell out of the definition of `commission'---Order of First Appellate Authority was vacated and assessments were set aside with the directions for fresh consideration. 2008 PTD 1751 rel. (b) Words and phrases--- ----Franchised dealer---Agent---Distinction---Franchised dealer was defined as "a retailer who sells the product or service of a manufacturer of supplier under a franchise agreement which generally protects the territory for the retailer and provides advertising and promotion support to him "---Such definition showed…

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