I.    EXECUTIVE SUMMARY

High Court held that the tax inadvertently deposited with the FBR ought to have been recovered by the Provincial authority from FBR (instead of the Applicant). 

Hence, no default charge or penalty can be levied on the Appellant / Taxpayer as well.

II.   DETAILS

A.   Facts and Reference

1.  Further to KQU -------------------, being an important matter, we would inform you about ------------------------ (Attachment 3098.1) in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2.   Mr Shamshad Ahmed, Advocate has filed Vakalatnama on behalf of Respondent-----, which is taken on record.

3.   Through this Reference Application, the Applicant has impugned Order dated ------------ passed in Appeal No.AT-51/2021 by the Appellate Tribunal, --------------, proposing the following questions of law:-

A. Whether the learned Appellate Tribunal erred in law and fact by failing to appreciate the facts and circumstances of the case and directing the Respondent department to recover the default surcharge under Section -------------------------- ( the “Act” ) and penalty amount under Section ---- of the Act in contravention of the Order in Appeal?

B. Whether any penalty or default surcharge can be imposed on the Applicant in light of the Order in Appeal passed by the learned Commissioner (Appeals)?

C. Whether any penalty or default surcharge can be imposed on the Applicant in the light of the finding by the Commissioner Appeals in the Order in Appeal that there is no default by the Applicant in respect of the payment of the principal amount?

B.   ----HC Deliberations

1 to 6 

C.   SHC Decision

In view of above, the proposed Questions are answered in favour of the Applicant and against the Respondent; and as a consequence, thereof, impugned Order of the Tribunal and the finding against the Applicant in the Commissioner (Appeals) Order regarding any directions are hereby set-aside. This Reference Application is allowed. Let copy of this order be issued to the Appellate Tribunal ------------------.

III.   Further Details & Services 

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants) 

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