SHAHBAZ AHMAD vs COMMISSIONER INLAND REVENUE, RTO, SARGODHA Ss — 2024 PTD 1097 INLAND REVENUE APPELLATE TRIBUN

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SHAHBAZ AHMAD VS COMMISSIONER INLAND REVENUE, RTO, SARGODHA Ss. 111, 120 & 122---Convention between the Government of the French Republic and the Government of the Islamic Republic of Pakistan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, Art.4---Tax recovery---Double taxation---Non-resident---Bilateral treaty---Appellant was aggrieved of show-cause notice issued by authorities for recovery of tax---Plea raised by appellant was that he was a tax non-resident and was assessed in France---Validity---Provisions of Income Tax Ordinance, 2001, could not be invoked as Bilateral Tax Treaty between Pakistan and France had overriding effect---Appellant was filing his tax returns in France and in the light of treaty between Pakistan and France no action could be perpetuated in Pakistan by authorities---Appellant was absolved from taxation in Pakistan and no provision of Income Tax Ordinance, 2001, was attracted as he did not have any plausible source of income that could be deemed to have been accrued to him---Provision of S. 111 of Income Tax Ordinance, 2001, was applicable to residents of Pakistan only and could not be extended to appellant who was resident abroad and did not have taxable in Pakistan---Provision of S. 111 of Income Tax Ordinance, 2001, could be invoked on non-residents whose habitual abode was in France and had more personal and economic interest in France than Pakistan and had not earned Pakistan source income---Authorities failed to discharge onus for reinforcement of S. 111 of Income Tax Ordinance, 2001---Appellate Tribunal Inland Revenue set aside the orders passed by two fora below, as appellant was not taxable in Pakistan and S. 111 of Income Tax Ordinance, 2001, was not attracted to non-resident in presence of treaty between Pakistan and France upon applicable tie-breaker text---Appeal was allowed, in circumstances.

SHAHBAZ AHMAD vs COMMISSIONER INLAND REVENUE, RTO, SARGODHA Ss — 2024 PTD 1097 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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