KBS STEEL, GUJRANWALA vs The COMMISSIONER INLAND REVENUE, LTO, LAHORE Expenditure

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KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Expenditure---Meaning---Expenditure is what is paid out or away and is something which is gone irretrievably. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss.129 & 122---Decision in appeal---Remand---Scope---Order passed under S. 122 creating liability is an assessment order for all intents and purposes and can only be dealt under Cl. (a) of S. 129(1) and binds the Commissioner (Appeals) only to confirm, modify or annul the assessment order and does not in any manner confer jurisdiction on the Commissioner (Appeals) to remand the matter to the assessing officer. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE S.129---Decision in appeal---Remand---Scope---Remand should not be directed in a light vein---In ultimate analysis, a remand neither favours the revenue nor the assessee---In revenue matters, without an exception after remand the fate of an assessee never changes for the better---In most of the cases the remand order is rather employed by the assessing officer to make the fate of assessee even worse---All previous discrepancies are meticulously taken care of so that the assessee finds no favourable factual or legal proposition to urge before the appellate forum. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss.129 & 122---Decision in appeal---Remand---Scope---Where matter in issue is an assessment order then resort can only be have to S. 129(1)(a)---Said provision unequivocally eclipses and restricts the Commissioner's scope of power to confirm, modify or annul the assessment and the Commissioner's decision cannot go beyond the ambit of assessment. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss.122, 111 & 35---Sales Tax Rules, 2006, R.14---Amendment of assessment---Unexplained income or assets---Stock-in-trade vis-à-vis Annexure "F" of sales tax return (carry forward summary)---Scope---Appellant in Annexure "F" of its sales tax return declared its closing stock of Rs. 1.3 billion whereas it had declared the closing stock in its income tax return to be Rs. 1.115 billion---Assessing Officer treated the difference of Rs. 185 million as expenditure on excess purchases, having not been declared in income tax return---Validity---Data as given in Annexure "F" of sales tax return was basically a summary of input tax which could not be made basis for calculating stocks held on a particular date to make its comparison with that of stock-in-trade as declared in income tax return---Annexure "F" was only meant for summary of input tax and excess carry forward amount of sales tax credit---None of the provisions of Sales Tax Act, 1990, or of the Income Tax Ordinance, 2001, had purported to deem these figures of carry forward summary to be the closing stocks---Such could not be equated with stock statement of a taxpayer on the whims and wishes of the department for creating concurrent tax liabilities under two separate statutes having different standards of reporting stocks and inventory---Appeal of the taxpayer was allowed and the orders passed by the authorities were vacated. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss.111 & 35---Unexplained income or assets---Stock-in-trade---Purchasing excess stock; an investment or expenditure---Scope---If any difference of declared stock is found or is effectively unearthed through audit or otherwise, it cannot be added as expenditure under S.111(1)(c)---Stocks ought to be added in investment, money, assets or valuable articles owned by a person whose sources are not adequately explained by him but it cannot be added towards his expenditures---Genuinely, if any misappropriation of stocks is found by comparing the declarations made under the Income Tax Ordinance, 2001, with that information available in sales tax record then its addition can be made under S. 111(1)(b) of the Income Tax Ordinance, 2001 and the provisions of S. 111(1)(c) are least relevant on the subject---Stocks are physically tangible in trade or business whereas expenditures are irretrievably gone into costs of goods. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Strict rule of interpretation----Scope---Strict rule of interpretation mandates that plain, clear and direct meaning is given to words which are used in common parlance by the general public to which such law is applicable---No presumption with respect to a particular meaning---Particular meaning cannot be given to a word which is not clear by making a presumption that particular meaning is the intention of the legislature---Court cannot under the guise of possible or likely intention of the legislature give meaning to the words which are not clear and where contextual meaning cannot be made out. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE S.35---Stock-in-trade---Meaning---Stock-in-trade means anything produced, manufactured, purchased or otherwise acquired for manufacture, sale or exchange, and any material or supplies to be consumed in the production or manufacturing process, but does not include stocks and shares. Citation Name: 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case KBS STEEL, GUJRANWALA VS The COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss.129 & 122---Decision in appeal---Scope---Language of S.129(1)(a) only empowers the Commissioner (Appeals) to confirm, modify or annul the assessment order and exception whereof is enumerated in Cl. (b) of S. 129(1), which empowers the Commissioner (Appeals) to make such order as he thinks fit---Express language of law has unequivocally prescribed power of Commissioner (Appeals) under S. 129 while dealing with the assessment order and explicitly describes Commissioner (Appeals) powers while dealing with other cases---Section 129 unequivocally eclipses and restricts the power of Commissioner (Appeals) to confirm, modify or annul the assessment.

KBS STEEL, GUJRANWALA vs The COMMISSIONER INLAND REVENUE, LTO, LAHORE Expenditure — 2023 PTD 467 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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