AMIR MAJEED KHAN NIAZI vs The DCIR, RTO, SARGODHA S — 2025 PTD 811 INLAND REVENUE APPELLATE TRIBUNAL OF PAKIST

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AMIR MAJEED KHAN NIAZI VS The DCIR, RTO, SARGODHA S. 3---Tax liability, determination of---Assessment of sales tax returns on the basis of income tax returns---Charging section(s) of law---Applicability---Appellant (being a registered person involved in supply of construction material to Gawadar/ Tribal Areas) was aggrieved of concurrent assessment of sales tax returns against it on the basis of income tax returns---Validity---Assessment of sales tax returns on the basis of income tax returns cannot be done---In the present case , the contravention case had purely been made out merely on the basis of information obtained from the income tax returns of the appellant---Tax can be levied only under the authority of law through an express charging provision---There is no concept of enlarging the scope of charging section on the basis of ambiguous and presumptive mechanism which the scheme of the law imposing the tax has not provided---The Revenue while determining the liability upon any person for levying or charging of sales tax under transaction falls within the scope and ambit of charging section and in the case of sales tax, the essential two attributes in any transaction i.e. taxable supply and taxable activity must exist so that the charging section can be triggered---Thus, in any audit or adjudicating proceedings, the ambiguous and presumptive approach by any auditing officer or assessing officer cannot be approved when the aforesaid essential attributes are not forthcoming from the said findings---Indeed, it is settled law that tax cannot be charged and levied unless it falls squarely within the purview of charging provision---Taxing law cannot be extended by implication beyond clear import of language---Appellate Tribunal Inland Revenue quashed / set-aside the impugned orders of the authorities below deeming the same as without assumption of jurisdiction, illegal and void ab-initio, on both factual as well as on legal issues---Appeal, filed by the registered person, was allowed.

AMIR MAJEED KHAN NIAZI vs The DCIR, RTO, SARGODHA S — 2025 PTD 811 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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