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COMMISSIONER OF INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR vs SWAT CERAMICS COMPANY (PVT — 2025 PTD 650 PESHAWAR-HIGH-COURT

Case information

Citation
2025 PTD 650 PESHAWAR-HIGH-COURT
Court
Peshawar High Court
Year
2025
Reporter
PTD
Parties
COMMISSIONER OF INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR vs SWAT CERAMICS COMPANY (PVT
Subject matter
Tax & Customs
Provisions referred to
S. 153; Income Tax Ordinance

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

Judgment text as reported

COMMISSIONER OF INLAND REVENUE, REGIONAL TAX OFFICE, PESHAWAR VS SWAT CERAMICS COMPANY (PVT.) LTD., SHAIDU NOWSHERA Ss.153(1) & 153(1)(c)---Payment of club membership fee---Deduction of tax---Section 153 of the Income Tax Ordinance, 2001, applicability of---Doctrine of mutuality---Department proceeded against the taxpayer /company for its failure to deduct tax from an amount paid to Defence Housing Authority Country and Golf Club ('the DHA Club') as membership fee on the ground that such payment falls within the ambit of S. 153(1)(c) of the Ordinance, 2001, being a payment made for/against services---Stance of the taxpayer was that since the nature of the payment of fee paid on account of acquiring the DHA Club membership does not fall under any category of payment specified in S. 153(1) of the Ordinance, 2001, therefore, it is not required to deduct any tax---Department filed reference against the order of Appellate Tribunal Inland Revenue passed in favour of taxpayer---Validity---Under the doctrine of mutuality no one can make profit out of oneself ;the accrual to member's club from amounts received from its members in respect of providing activities / service cannot be considered to be income as profit of the Club, and its members are exempt from ambit of tax---Thus, the decision of the Inland Revenue Appellate Tribunal was correct and the proposed questions of law were answered in the negative i.e. against the applicant / Department---Reference Application, filed by the department, was dismissed.

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