JUDGMENT

The present Reference under Section 133 of the Income Tax Ordinance, 2001 (hereinafter referred to as 'the Ordinance') has been preferred by Commissioner Inland Revenue against the order of Appellate Tribunal Inland Revenue dated 17.10.2012.2. Arguments heard and record gone through.3. The controversy pertains to the application of Section 153 of the Ordinance to payment of "membership fee" to Defence Housing Authority Country Golf Club (hereinafter referred to as the 'DHA Club') by the respondent/taxpayer. It is averred that the taxpayer has failed to deduct tax under Section 153 of the Ordinance from the amount of Rs.2,730,000/- paid to the DHA Club as membership fee. The taxpayer maintains that since the nature of the payment of fee paid on account of acquiring the DHA Club membership does not fall under any category of payment specified in Section 153(1) of the Ordinance, therefore, it was not required to deduct any tax. The department, however, insists that such payment falls with...