PEPSI COLA INTERNATIONAL (PRIVATE) LIMITED vs FEDERATION OF PAKISTAN through Secretary Revenue Division, Islam

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PEPSI COLA INTERNATIONAL (PRIVATE) LIMITED VS FEDERATION OF PAKISTAN through Secretary Revenue Division, Islamabad Ss.174(3), 161 & 162---Records, information collection and audit---Maintenance of record by taxpayer---Statutorily required time-period for maintenance of such record----Maintenance of record after lapse of statutorily required time for such maintenance---Recovery of tax from the person from whom tax was not collected or deducted---Interpretation of Ss.174 & 161 of Income Tax Ordinance, 2001---Scope---In the present case the taxpayer impugned notices issued under S.161 of Income Tax Ordinance, 2001 on ground that impugned notices required taxpayer to provide record in respect of transactions pertaining to period which fell outside the time-period required for maintenance of such record under S.174 of Income Tax Ordinance, 2001---Validity---Held, that burden lay on department to justify delayed proceedings especially in view of S.174(3) of Income Tax Ordinance, 2001---Proceedings under S.161 of said Ordinance were independent proceedings with no time limit, however, the issue for Department was provision of documents for the tax year hit by limitation of S.174(3) of said Ordinance and there was no obligation on taxpayer to produce such documents beyond the prescribed six-year period as they were not required under law to maintain the same---Department, at best, could continue its proceedings under S.161 of the said Ordinance, but could not compel taxpayer to produce documentary evidence, and thereafter burden would lie on Department to establish their case as opposed to relying on taxpayer to produce documents before Department---High Court observed that Department had to discharge their burden before declaring any liability of taxpayer and could not simply conclude that for want of documentary evidence, taxpayer was rendered liable---High Court set side impugned notice to extent for demands of production of documents---Constitutional petition was allowed, accordingly.

PEPSI COLA INTERNATIONAL (PRIVATE) LIMITED vs FEDERATION OF PAKISTAN through Secretary Revenue Division, Islamabad Ss — 2022 PTD 51 LAHORE-HIGH-COURT-LAHORE

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