WELCON CHEMICALS VS COMMISSIONER OF INCOME-TAX
2001 P T D 1656
[Lahore High Court]
Before Malik Muhammad Qayyum, J
WELCON CHEMICALS
versus
COMMISSIONER OF INCOME‑TAX and others
Writ Petitions Nos. 13956 of 1999 and 20514 of 2000, heard on 02/03/2001.
Income Tax Ordinance (XXXI of 1979)‑‑
‑‑‑‑Ss.80‑C(4) & 50‑‑‑Deduction of tax at source ‑‑‑Assessee, deriving income from sale of pesticides‑‑‑Income‑tax was paid by the assessee under S.50(5) of the Income Tax Ordinance, 1979 at the time of import‑‑‑Department had asked the assessee to pay the income‑tax as a supplier under S.50(4) of the Ordinance ‑‑‑Validity‑‑‑Assessee having had paid the tax at the time of import of the goods, it amounted to final discharge of liability in terms of S.80‑C(4) of the Income Tax Ordinance, 1979‑‑‑Assessee having paid the tax under S.50(5) of the Ordinance could not be called upon to pay any further tax.
Commissioner of Income‑tax v. Messrs Sir E.H. Jaffer & Sons I.T.A. No.98 of 1998 and Messrs Elahi Cotton Mills and others v. Federation of Pakistan 1997 PTD 582 ref. ,
Dr. Ilyas Zafar for Petitioner.
Nemo for Respondents.
Date of hearing: 2nd March, 2001.
JUDGMENT
This judgment shall dispose of W. P. No.13956/99 and 20514/2000 in both of which common question is involved.
2. The petitioner is an importer who derives his income from sale of pesticides. At the time of import the income tax is paid by the petitioner under section 50(5) of the Income Tax Ordinance. He has, however, been asked to pay the income tax as a supplier under section 50(4). Feeling aggrieved the petitioner has invoked the Constitutional jurisdiction of this Court.
3. Learned counsel for the petitioner has contended that as the petitioner had paid the tax at the time of import of the goods it amounted to A final discharge of the liability in terms of section 80‑C(4) of the Income Tax Ordinance, 1979. This contention of. the learned counsel is supported by a judgment of Division Bench of Sindh High Court in the case of Commissioner of Income‑tax v. Messrs Sir E.H. Jaffer & Sons (I.T.A. No.98 of 1998) decided on 27‑4‑2000 in which the Division Bench dismissed the reference filed by the Department holding that as the income tax has been paid under section 50(5) of the Income Tax Ordinance it cannot be called upon to pay any further tax. Reliance has been placed in support thereof or the case decided by the Supreme Court of Pakistan in Messrs Elahi Cotton Mills and others v. Federation of Pakistan (1997 PTD 582).
4. No one has appeared on behalf of the respondents. They are proceeded against ex parte.
In view of what has been stated above, this petition is allowed and the impugned demand is declared to be without lawful authority and of no legal effect
No order as to costs.
M.B.A./W‑22/L?????????????????????????????????????????????????????????????????????????????????? Petition allowed.