MALIK MUHAMMAD QAYYUM, J. - This judgment shall dispose of W.P. Nos. 13956/1999 and 20514/2000 in both of which common question is involved.
2. The petitioner is an importer who derives his income from sale of pesticides. At the time of import the income-tax is paid by the petitioner under Section 50(5) of the Income Tax Ordinance. He has, however, been asked to pay the income tax as a supplier under Section 50(4). Feeling aggrieved the petitioner has invoked the Constitutional jurisdiction of this Court.
3. Learned counsel for the petitioner has contended that as the petitioner had paid the tax at the time of import of the goods it amounted to final discharge of the liability in terms of Section 80(c)
(4) of the Income Tax Ordinance, 1979. This contention of the learned counsel is supported by a judgment of Division Bench of Sind High Court in the case of Commissioner of Income Tax v. M/s. E.H. Jaffer and Sons (ITA No. 98 of 1998), decided on 27.4.2000 in which the Division Bench dismissed the reference filed by the Department holding that as the income tax has been paid under Section 50(5) of the Income Tax Ordinance it cannot be called upon to pay any further tax. Reliance has been placed in support thereof or the case decided by the Supreme Court of Pakistan in Messrs Elahi Cotton Mills and others v. Federation of Pakistan (1997 PTD 582).
4. No one has appeared on behalf of the respondents. They are proceeded against ex parte.
5. In view of what has been stated above, this petition is allowed and the impugned demand is declared to be without lawful authority and of no legal effect.
No order as to costs.