| Case ID |
0059f6cd-855d-44b3-a3ce-12424fdfeba7 |
| Body |
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| Case Number |
I.T.R. No.18 of 1987 |
| Decision Date |
Nov 18, 1991 |
| Hearing Date |
Nov 18, 1991 |
| Decision |
The court ruled in favor of the respondent, stating that the provision/liability for tax falls within the expression 'for meeting working capital requirements' as used in Part III of the First Schedule. Consequently, this provision is to be excluded from the total income for the purpose of levying a surcharge. The court referenced similar cases and emphasized that the previous decisions were consistent with the current ruling, ultimately answering the question posed by the Income Tax Appellate Tribunal in the affirmative. No costs were awarded in this case. |
| Summary |
In the case I.T.R. No.18 of 1987, the Sindh High Court addressed a significant legal question regarding the interpretation of the Income Tax Ordinance, 1979, particularly concerning provisions for tax liabilities and their implications on working capital requirements. The court heard arguments from both the petitioner's representative, Sheikh Haider, and the respondent's counsel, Saleem-ud-Din Ahmed, leading to a decision that reinforced established precedents in tax law. The ruling clarified that certain tax provisions should not be included in the total income for surcharge calculations, thereby impacting the financial obligations of businesses operating in Pakistan. This case underscores the importance of understanding tax liabilities and their exclusions, which can serve as a crucial reference for future tax-related disputes and interpretations. The court's decision aligns with previous judgments, notably Commissioner of Income Tax v. Pakistan Tobacco Co. Ltd., which further solidifies the legal framework surrounding tax assessments in Pakistan. Legal professionals and businesses alike should pay close attention to such rulings as they can influence operational strategies and financial planning within the country's regulatory context. |
| Court |
Sindh High Court
|
| Entities Involved |
Messrs GANNON DUNKERLEY & CO. (PAKISTAN) LIMITED, KARACHI,
COMMISSIONER OF INCOME TAX, CENTRAL ZONE B, KARACHI
|
| Judges |
NASIR ASLAM ZAHID,
MUHAMMAD HUSSAIN ADIL KHATRI
|
| Lawyers |
Sheikh Haider,
Saleem-ud-Din Ahmed
|
| Petitioners |
COMMISSIONER OF INCOME TAX, CENTRAL ZONE B, KARACHI
|
| Respondents |
Messrs GANNON DUNKERLEY & CO. (PAKISTAN) LIMITED, KARACHI
|
| Citations |
1992 SLD 111,
1992 PTD 756
|
| Other Citations |
Commissioner of Income Tax v. Pakistan Tobacco Co. Ltd. 1988 PTD 66
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
FirstSched.
|