2024 PTD 584 PESHAWAR-HIGH-COURT

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Citation Name: 2024 PTD 584 PESHAWAR-HIGH-COURTBookmark this Case COMMISSIONER OF INLAND REVENUE, MARDAN ZONE, REGIONAL TAX OFFICE, PESHAWAR VS IMRAN AHMAD GREEN HILL CNG STATION MALAKAND S.153 (3)(b), 234-a & Second Sched., Part I, Cl. 126-F [as inserted by Finance act, 2010]---Circular No. 14 of 2011 dated 06-10-2011 issued by the Federal Board of Revenue---Exemption on profits/ gains derived by a taxpayer located in the most affected areas of Khyber Pakhtunkhwa etc. vide Cl. 126-F---Entitlement to---Taxpayer was deriving income from running CNG Filling Station located in Malakand---Taxpayer was issued refund on the basis of exemption under Clause 126-F, however, the additional Commissioner Inland Revenue amended deemed assessment considering that the taxpayer was not entitled to exemption---Ground taken for amendment was that as the commission income fell under the Presumptive Tax Regime (PTR), hence, the provision of Cl. 126-F was not applicable---Commissioner Inland Revenue (appeals) allowed appeal preferred by the taxpayer which order was maintained by the appellate Tribunal Inland Revenue, against which order the Department filed Reference---Validity---Clause 126-F was inserted in Part I of the Second Schedule through Finance act, 2010, to grant fiscal relief to the taxpayers whose business was adversely affected in the Province of Khyber Pakhtunkhwa administrated Tribal area and Provincial administrated Tribal area for a period of three years with effect from Tax Year 2010---In the present case, the respondent /taxpayer was issued adjustment / refund of income tax for certain amount for the tax period 2010 relating to tax deducted under S. 234-a of the Income Tax Ordinance, 2001, through an order of refund in terms of Clause/Entry 126-F, however, said order was amended by withdrawing the said refund from the respondent/taxpayer---High Court viewed that Income of the respondent/taxpayer for the tax year 2010 was exempt from payment of income tax in terms of Clause / Entry 126-F of Part I to the Second Schedule to the Income Tax Ordinance, 2001 and, thus, the respondent / taxpayer was entitled to the refund of the minimum tax charged under S. 153 subsection 3(b) of the Income Tax Ordinance, 2001---High Court declined to interfere in order passed by the appellate Tribunal Inland Revenue---Reference application, filed by the Department, was dismissed, in circumstances.

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