NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. vs The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L

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NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. VS The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L.T.O.) Ss. 17, 21(2) & 35---Income Tax Ordinance (XLIX of 2001), Ss. 113, 122 & 133(1)---Reference---Transmission license---Sale and purchase of electricity---Amendment of assessment---Applicant/National Transmission and Dispatch Company (NTDC) was licensed by National Electric Power Regulatory Authority to transmit electricity from Generation Companies (GENCOs) to Distribution Companies (DISCOs)---Dispute was with regard to charging of minimum tax on turnover---Validity---There was no difference in the functions of Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) as it existed now and functions performed by CPPA of NTDC prior to 03-06-2015---CPPA-G was incorporated as a special purpose vehicle and was tasked with administering a Market Settlement System for commercial transactions envisaged by agreement---DISCOs remained principal and primary obligor in respect of payments and obligations of purchaser (a DISCO in a particular case) towards seller or supplier (GENCOs) under the power purchase agreement---NTDC merely recovered the Use of System Charges and similarly CPPA-G was entitled to market operation fee while operating Market Settlement System---DISCOs were paying minimum tax on turnover including purchase price of electricity---Electricity which was purchased from GENCOs by DISCOs was made liable to minimum tax on the turnover of DISCOs and FBR did not demand that tax from NTDC as well---Purchase of electricity was not done firstly by NTDC and thereafter NTDC did not sell electric power to DISCOs at inflated price---Authorities did not produce any evidence to such effect---NTDC would be falling in breach of its transmission license if it were to engage in such a business---High Court set aside the orders passed by Appellate Tribunal Inland Revenue---Reference was allowed accordingly. Citation Name: 2024 PLD 360 LAHORE-HIGH-COURT-LAHORE NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. VS The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L.T.O.) S. 21(2)---Transmission license---Scope---Grant of transmission license is distinct and separate from issuance of distribution license---Distribution company in whose favour license has been issued has exclusive right to provide distribution services and to make sales of electric power to the consumers. Citation Name: 2024 PLD 360 LAHORE-HIGH-COURT-LAHORE NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. VS The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L.T.O.) S. 133(1)---Reference---Documents, consulting of---Principle---Undisputed public documents can be looked at by High Court while deciding Reference application sand can take notice of such documents in any case.

NATIONAL TRANSMISSION AND DESPATCH COMPANY LTD. vs The COMMISSIONER INLAND REVENUE, LARGE TAXPAYERS OFFICE (L — 2024 PLD 360 LAHORE-HIGH-COURT-LAHORE

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