LAHORE, Oct 12: If an importer having no other source of income has paid income tax at source on arrival of his consignment, the payment would be deemed full and final discharge of his liability and he would be entitled to receive an exemption certificate without making an irrevocable declaration or filing returns, the Lahore High Court held on Friday.

Justice Mansoor Ahmad, who allowed a private company’s petition in this behalf, however, rejected the contention that deduction of tax at the time of arrival of goods and at the time of their supply amounted to double taxation as the latter deduction would be charged to the accounts of buyers.

The petitioner company submitted through Advocate Hashim Sabir Raja that it was engaged in the business of importing chemicals only and paid income tax on arrival of consignments. It was entitled to receive an exemption certificate under Section 50 of the Income Tax Ordinance so that no tax was deducted again at the time of selling the chemicals in the local market, ‘which would amount to double taxation.’

The Central Board of Revenue rejoined that the petitioner being a commercial importer, did not qualify for the certificate.

The presumptive tax regime would apply to an importer-cum-supplier subject to concessional rates if he opted for it by filing an irrevocable declaration to the effect along with returns of income under Section 55 of the IT Ordinance.

Justice Ahmad held that the case of the petitioner fell within Section 50(5) of the ordinance.

The filing of irrevocable declaration opting for presumptive tax regime would only be relevant to cases falling under Section 50(4).

The application made by the petitioner for the certificate shall be deemed pending before the IT commissioner and would be disposed of in accordance with the law.