I.T.A. NO.5339/LB OF 1999 Versus I.T.A. NO.5339/LB OF 1999

ORDER

M. MUNIR QURESHI (ACCOUNTANT MEMBER). ---This appeal by Revenue is directed against order of CIT(A), Zone-I, Lahore, dated 5-8-1999, in which the First Appellate Authority has vacated the order passed under section 52 of the Ordinance holding the assessee to be in default of the provisions of section'50(4).

2. According to the department the assessee having made purchases of raw material and Bardana amounting to Rs.13,56,100 was required to withhold tax under section 50(4) and the CIT(A) has wrongly cited in his order that the assessee's purchases (excluding then from food depts) being largely unverifiable and also since these purchases did not exceed Rs.25,000 in each case, therefore, the assessee was not liable to withhold tax under section 50(4).

3. The assessee pleaded before CIT(A) that purchases referred to by Revenue are not in the nature of "supplies" and having been held to be (largely) unverifiable and also below Rs.25,000 in each case, could not be subjected to withholding tax provisions.

4. We have looked into the matter and we find that relief as accorded by the First Appellate Authority is justified by the operative facts and the department has not been able to make out a case to show that the provisions of section 50(4) are applicable in assessee's, case.

5. Resultantly, the departmental appeal fails.

C.M.A./M.A.K./65/Tax(Trib.) Appeal dismissed.