MASOOD AHMED KHAN NIAZI CONTRACTOR, SARGODHA vs COMMISSIONER INLAND REVENUE, RTO, SARGODHA Ss

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MASOOD AHMED KHAN NIAZI CONTRACTOR, SARGODHA VS COMMISSIONER INLAND REVENUE, RTO, SARGODHA Ss. 3 & 11---Concealment/suppression of gross sales of supplies, allegation of---Assessment of sales tax---Basis of income tax returns---Proprietary---Tax, charging of---Essential attributes---Appellant (registered person / a contractor) approached Appellate Tribunal against concurrent adverse orders passed against it---Held, that record revealed that the contravention case against the Appellant had purely been made out merely on the basis of information obtained from the income tax returns of the appellant---Hence, the very foundation of the assessment was based on alien consideration, therefore, the edifice built upon had to crumble---A 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 for which the scheme of the law imposing the tax had 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 said essential attributes are not forthcoming from the said findings---Indeed, 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 illegal, null and void ab-initio, on both factual and legal issues---Appeal filed by the registered person (contractor) was allowed, in circumstances.

MASOOD AHMED KHAN NIAZI CONTRACTOR, SARGODHA vs COMMISSIONER INLAND REVENUE, RTO, SARGODHA Ss — 2025 PTD 848 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

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