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COMMISSIONER INLAND REVENUE ZONE-I, LTU vs MCB BANK LIMITED S — 2021 SCMR 1325 SUPREME-COURT

Case information

Citation
2021 SCMR 1325 SUPREME-COURT
Court
Supreme Court of Pakistan
Year
2021
Reporter
SCMR
Parties
COMMISSIONER INLAND REVENUE ZONE-I, LTU vs MCB BANK LIMITED S
Subject matter
Tax & Customs
Provisions referred to
S. 161---F; S. 161; Income Tax Ordinance

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

COMMISSIONER INLAND REVENUE ZONE-I, LTU VS MCB BANK LIMITED S. 161---Failure to pay tax collected or deducted---Show cause notice---Section 161 of the Income Tax Ordinance, 2001 ('the 2001 Ordinance')---Scope---Section 161 of the 2001 Ordinance became applicable not simply because a payment was made (or a transaction or event happens) but rather on a failure to either collect tax or deduct it---Failure was the triggering event, therefore, it was a gross misreading of S. 161 to conclude that for the said section to apply all that the Commissioner had to do was point to a payment, and that was sufficient to cast the burden wholly and solely on the taxpayer to show that there was no failure---At the very least, initially, there must be some reason or information available with the Commissioner for him to conclude that there was, or could have been, a failure to deduct---Such reason or information must satisfy the test of objectiveness, i.e., must be such as would satisfy a reasonable person looking at the relevant facts and information in an objective manner---Threshold was not so stringent as to require "definite information" but it was also not so low as to be bound merely to the subjective satisfaction of the Commissioner; it was only if this threshold was successfully crossed that the notice could be issued, and it was only then that the burden may shift on the person allegedly in default to show that S. 161 did not, or ought not to, apply.

Other judgments reported in 2021 SCMR

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