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COMMISSIONER (LEGAL DIVISION), KARACHI versus NOVARTIS PHARMA (PAKISTAN) LTD.


Assessing Officer assessed the tax deduction on payment made by Assisi as payment of expenses to the distributing company for distribution of its products in accordance with Section (4 (A&A) and distribution? distribution agreement) Property paid in connection with the sale of services to an agent designated as commissioned or compensated as a commission after the payment of the term means the word compensation means the expense incurred. The records show that the two payments had different meanings for such words, distribution for such services. The distribution company did some work in connection with the distribution of the Mappani products, and a special fee was paid for the expenses related to the inspection, which was paid for by the inspection officer. Tax deducted under section 50 of the Tax Ordinance, cannot be treated as expenses paid by the 1979 Assessment. The Commission answered the question in favor of the High Core rt Respondent.

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