ISLAMABAD: The Islamabad High Court (IHC) has issued notice to an anchorperson in an alleged income tax evasion case. The IHC has issued an order (I.T.R No.06 of 2025) Commissioner Inland Revenue Vs anchorperson.
The Federal Board of Revenue (FBR) has filed an income tax reference application challenging the Appellate Tribunal Inland Revenue’s decision to annul an assessment order against the female anchorperson. The FBR contends that she misclassified her income under the Final Tax Regime (FTR) instead of the Minimum Tax Regime (MTR), thereby evading her actual tax liability.
According to the FBR, the anchorperson declared receipts amounting to Rs 33.34 million in her tax return for the tax year 2017 and claimed tax deductions at 10% under the FTR. However, through an assessment order dated 05.06.2023, the Additional Commissioner Inland Revenue reclassified the receipts under the MTR, raising a tax demand of Rs 7.53 million.
This assessment order was upheld by the Commissioner Inland Revenue (Appeals) on 11.12.2023. However, the Appellate Tribunal Inland Revenue (ATIR) overturned both orders on 31.10.2024, concluding that the receipts could not be treated as income for tax purposes and annulling the tax demand.
Advocate Osama Shahid pleaded the FBR’s case before a division bench of the IHC, comprising Chief Justice Aamer Farooq and Justice Inaam Ameen Minhas. He argued that the ATIR failed to consider key aspects of the case. Specifically, the FBR’s counsel asserted that her wealth statement showed that she had incurred no business expense, and therefore, the assessment order issued by the Additional Commissioner was lawful. Further, the counsel submitted that the deemed assessment order was rightly amended under Section 122(5A) of the Income Tax Ordinance, 2001, as it was erroneous and prejudicial to revenue.
After hearing the submissions on 21.01.2025, the IHC framed three questions of law for determination. The court has issued notices to anchorperson, seeking her response to the FBR’s allegations.
Learned counsel for the applicant (FBR) inter alia contends that respondent No.1 (anchorperson) is a service provider and on receipt of the consideration for the services the certain amount is to be deducted as withholding tax under section 153(1)(b) of Income Tax Ordinance, 2001. Learned counsel contended that for the tax year 2017 taxpayer filed the return wherein the receipts from the services provided was treated as income and as a final tax liability. It was contended that show cause notice was issued on 20.04.2023, which culminated in order-in-original and appeal filed there against was decided on 11.12.2023, which sustained the order-in-original.
Copyright Business Recorder, 2025
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