PAKISTAN TELECOMMUNICATION AUTHORITY vs FEDERATION OF PAKISTAN for the purpose of service through Chairman Fed

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

PAKISTAN TELECOMMUNICATION AUTHORITY VS FEDERATION OF PAKISTAN for the purpose of service through Chairman Federal Board of Revenue, Islamabad Ss. 2(63), 4 & 147---advance tax---assessment, collection and adjustment---Scope---Charge is created under S. 4 of Income Tax Ordinance, 2001 on income of taxpayer to discharge advance tax liability---advance tax is an impost in view of S. 4(6) read together with S. 147 of Income Tax Ordinance, 2001, and squarely falls within the definition of tax under S. 2(63) of Income Tax Ordinance, 2001---Tax authorities are empowered under S. 147(7) of Income Tax Ordinance, 2001 to use collection machinery for purposes of collecting advance tax computed as payable in accordance with Ss. 147(4) and (4B) of Income Tax Ordinance, 2001 subject to filing of any estimate by taxpayer under proviso to S. 147(6) of Income Tax Ordinance, 2001---This reflects that payment of advance tax is not optional but is a liability to be discharged by taxpayer unless the taxpayer falls within the carve-outs provided under Ss. 147(1) and (2) of Income Tax Ordinance, 2001---Merely because liability accrues without assessment of income tax does not make payment of advance tax optional or excludes advance tax from the definition of tax for purposes of S. 2(63) of Income Tax Ordinance, 2001---Fact that loability in relation to advance tax accrues and becomes payable without assessment is then catered for in S. 147(8), (9) and (10) of Income Tax Ordinance, 2001---advance tax paid in each quarter is treated as a tax credit that is set off against total income tax liability for the tax year as determined once an assessment has taken place after the expiry of tax year and total tax liability for such tax period crystallizes---advance tax is only a provisional payment to the extent that tax liability of taxpayer for relevant tax year remains to be assessed and the sum paid in the form of advance tax remains adjustable in terms of tax liability as assessed.

PAKISTAN TELECOMMUNICATION AUTHORITY vs FEDERATION OF PAKISTAN for the purpose of service through Chairman Federal Board of Revenue, Islamabad Ss — 2025 PTD 1364 ISLAMABAD

Case information

Judgment text as reported

Other judgments reported in 2025 PTD