49/2021 I.T.R.A CIVIL AVIATION AUTHORITY (Applicant) V/S THE APPELLATE TRIBUNAL INLAND REVENUE AND ANOTHER (Respondent)
Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author), Hon'ble Mr. Justice Agha Faisal
Order Date: 07-SEP-21
Section 236A of Income Tax Ordinance, 2001 requires a person, making sale by public auction or auction by a tender of any property or goods (including property or goods confiscated or attached, either belonging to or not belonging to the Government, local Government, any authority, a company, a foreign association declared to be a company under sub-clause (vi) of clause (b) of subsection (2) of section 80, or a foreign contractor or a consultant or a consortium or Collector of Customs or Commissioner Inland Revenue or any other authority, shall collect advance tax, computed on the basis of sale price of such property and at the rate specified in First Schedule, from the person to whom such property or goods are being sold. This provision is as clear as crystal however it is followed by an explanation inserted by Finance Act 2020 for the removal of doubt that the expression of sale of public auction or auction by tender include renewal of license previously sold by public auction or auction by a tender and where payment is received in installments, advance tax is to be collected with each installment. As we observe that there is no necessity of any explanation or any clarification as section 236A is clear in its entirety. Notwithstanding the above, even the explanation of clarificatory nature operates retrospectively as it only provides an assistance in interpreting the provisions correctly in terms of intention of the legislature, subject to however if a contradictory situation is reached by the Court interpreting the basic provisions as against explanation. We are, therefore, of the view that the applicant described as an agent collecting advance tax from the bidders/occupants/lessees/ licensees etc. to whom the premises/property was given either by way of public auction or tender or by any other mode and includes renewal of such document.Full judgment text for this case is not yet available on Pakistan Law Reports. Check the official Sindh High Court case law portal for the complete order.
This judgment is reproduced from a publicly available source for informational purposes and does not constitute legal advice. If you believe this listing contains an error,
let us know.