COMMISSIONER INLAND REVENUE, RTO, LAHORE vs PREMIUM LEATHER (PVT — 2026 PTD 307 INLAND REVENUE APPELLATE TRIBU

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

COMMISSIONER INLAND REVENUE, RTO, LAHORE VS PREMIUM LEATHER (PVT.) LTD., LAHORE S. 161---Deduction of withholding tax---Payments under multiple heads---Exemption of reduced rate---Entitlement---Appeal was filed by the Department against order passed by Commissioner Inland Revenue-Appeals/CIR(A) whereby the tax liability (of Rs. 1,973,470/- ) created under S. 161 of the Income Tax Ordinance , 2001 by the Officer Inland Revenue/OIR against the Taxpayer /Company (engaged in the business of Tanning and Processing of Leather, as a withholding agent) was deleted by holding that the OIR should have identified the specific default on the part of the taxpayer/ Company---Validity---Record revealed that Respondent was confronted qua non-deduction against payments under as many as eighteen Heads ( such as 'Purchases', 'Addition in Fixed Assets', 'Salaries/wages', 'Salaries-Cost of Sales', 'Salaries -Administrative ' , ' Directors remunerations', 'Cost of Sales', 'Administrative expenses', 'Forwarding and Commission', 'Packing expenses', 'Travelling Staff', 'Travelling Director', 'Vehicle running expenses', 'Stationary/Printing / Photocopies', 'Legal and Professional Charges', 'Auditors Remuneration', 'Other expenses', 'Default surcharge')---In the present case, the OIR, after examining the explanation/evidence produced by the respondent (taxpayer/withholding agent), vacated the charge under many heads which showed that the explanation/evidence was properly thrashed out and where the non-deduction was established on the part of the taxpayer tax was charged---Appellate Tribunal Inland Revenue set-aside the impugned order passed by the CIR(A) modifying the original order to the effect that charge of tax imposed by OIR on five heads (Purchases, Salaries-Administrative, Cost of Sale, Packing Expenses and Vehicle Running Expenses) was modified while charge on two heads (Addition in fixed Assets and Otherwise Expenses) was restored/upheld---Appeal, filed by the Department, was partly allowed accordingly. Citation Name: 2026 PTD 307 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTANBookmark this Case COMMISSIONER INLAND REVENUE, RTO, LAHORE VS PREMIUM LEATHER (PVT.) LTD., LAHORE Ss. 161(1) & 161(1B)---Failure to collect/deduct tax---Payment during proceedings---Recovery---Scope---Appeal was filed by the Department against order passed by Commissioner Inland Revenue-Appeals/CIR(A) whereby the tax liability (of Rs.1,973,470/-) under seven heads, from Purchases to other expenses, created under S. 161 of the Income Tax Ordinance, 2001 by the Officer Inland Revenue/OIR against the Company, as a withholding agent, was deleted---Reason given by the CIR(A) to delete the tax liability was that section 161 (1B) of the Income Tax Ordinance, 2001 ('the Ordinance 2001') is very clear that if the person from whom purchases have been made is a registered NTN holder, no principle liability can be recovered from the said person for non deduction of tax and only surcharge can be recovered under S. 161 (1B) of the Ordinance, 2001---Validity---Provision of S. 161 (1B) of the Ordinance, 2001 has no

COMMISSIONER INLAND REVENUE, RTO, LAHORE vs PREMIUM LEATHER (PVT — 2026 PTD 307 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

Case information

Judgment text as reported

Other judgments reported in 2026 PTD