KARACHI: An appellate bench of High Court of Sindh (SHC) headed by Justice Irfan Saadat Khan on Monday decided an Income Tax Reference Application against the applicant Inland Revenue (IR) and in favor of Siemens Pakistan Engineering Company Limited.

The applicant impugned a decision by the Income Tax Appellate Tribunal which held that IR cannot levy a charge of 1 per cent on the receipts by the respondent company on account of services rendered outside Pakistan. The IR department raised the demand under clause 3 of the part II, Second Schedule  to ITO 2001.

Kafeel Abbasi advocate represented the applicant/appellant department while the respondent company was represented by Ammar Athar Saeed. The bench announcing the judgment in open court upheld the judgment by the Income Tax Appellate Tribunal.