WARTSILA PAKISTAN (PVT.) LTD. vs COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss

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WARTSILA PAKISTAN (PVT.) LTD. VS COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss.4C(2)(i) & 4C(2)(ii)---Commission income---Super tax---Precedent---Binding nature---Appellant (taxpayer / company), while placing reliance on a decision given by the Appellate Tribunal Inland Revenue (Tribunal) in ITA No.3867/LB/2023 in a case titled as M/s Atlas Copco Pakistan v. CIR, LTO Lahore dated 01.03.2024 ('the M/s Atlas Copco Pakistan case'), contended the OIR incorrectly classified the commission earned by the appellant as "Brokerage and Commission" under section 4C(2)(i) of the Income Tax Ordinance , 2001 ('the Ordinance 2001') instead of foreign indent commission, and the correct total income under S.4C is below the threshold of 150 million rupees, hence, the appellant is not liable to payment of super tax---Validity ---The decision of the Tribunal on the issue given in M/s Atlas Copco Pakistan case had not even touched upon the exclusion given in S. 4C(2)(ii) of the Ordinance, 2001---Since there is no discussion about said primary aspect of the scheme of law, therefore, it cannot be said to be a binding precedent---If the relied judgment is found to be either per incuriam or sub-silentio it has no binding effect---Vital questions escaped adjudication by the earlier bench in M/s Atlas Copco Pakistan case and had become a case of either sub-silentio or per incuriam or a blend of both ---In any of the two events, the binding effect of the said judgment is defeated and diluted as the ratio in consideration of the scheme of law pertaining to super tax is not settled in the earlier said referred judgment---The principles of per incuriam and sub-silentio are exceptions to the doctrine of precedent and permit the court to overrule the ratio decidendi of the incorrect decision or to ignore the same---Thus, on analysis of S. 4C of the Ordinance, 2001 and other related provisions, the judgment referred in the M/s Atlas Copco Pakistan case, surfaced as a blend of both per incuriam and sub-silentio---The most appropriate interpretation of S. 4C of the Ordinance, 2001 is that commission income shall not be included as imputable though may be subject to Final Tax Regime and is required to be included under clause (i) of S.4C(2) of the Ordinance, 2001 as a sum in the taxpayer's income for the purpose of charging super tax---Appellate Tribunal Inland Revenue upheld the impugned order---Appeal, filed by Taxpayer/Company, being merit-less was dismissed. Your Search returned total 35531 records from 8400 - 8450

WARTSILA PAKISTAN (PVT.) LTD. vs COMMISSIONER INLAND REVENUE, LTO, LAHORE Ss — 2025 PTD 1707 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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