PESHAWAR: Peshawar High Courts judge, Justice Arshad Ali dismissed Tax Reference filed by Commissioner Inland Revenue (CIR), Corporate Zone. Peshawar against Peshawar Electric Supply Company holding that imposition of default surcharge in terms of section 161 (IB) is not legally correct.
The department made a case that PESCO being a tax agent was supposed to make deductions of withholding income and in case such payments are delayed by NTDC, PESCO is liable to pay the default charges.
CIR was represented in this main reference and connected identical references by Mukhtar Ahmwed Maneri Advocate while PESCO was ably defended by Hussain Ahmed Shirazi Advocate.
The full text of judgment follows:
Cir Corporate Zone Peshawar vs. Ms Peshwar Electric supply Company TR No 43-P 2022 (1)