| Case ID |
03a13874-4a28-47ba-a812-a9f537d5dbf6 |
| Body |
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| Case Number |
I.T.R. No. 118 of 1990 |
| Decision Date |
Mar 13, 1991 |
| Hearing Date |
Mar 13, 1991 |
| Decision |
The court upheld the Appellate Tribunal's decision, affirming that the provision/liability for tax could indeed be included for the purpose of calculating 'retained income' for surcharge. The court referenced previous judgments to establish that the law applicable to the assessment year is the law in force during that year, reinforcing the principle that tax liabilities are relevant for determining retained income. The judgment further clarified the distinction between accounting and assessment years, emphasizing the importance of the legislative definitions provided in the Income Tax Ordinance. |
| Summary |
In the case of I.T.R. No. 118 of 1990, the Sindh High Court deliberated on the application of the Income Tax Ordinance, 1979, particularly focusing on the interpretation of section 10 regarding tax liabilities and their inclusion in retained income calculations. The case arose from a dispute over the surcharges levied on the assessed income of Messrs Berger Paints Pakistan Ltd. The court examined the legal definitions and precedents set in earlier cases, concluding that tax liabilities are indeed relevant for the calculation of retained income in the context of surcharges. This ruling not only clarifies the legal framework surrounding income tax assessments but also reinforces the importance of adhering to the legislative intent behind tax laws. The decision highlights the intricate relationship between accounting and assessment years, a crucial aspect for tax practitioners and entities alike. The keywords pertinent to this case include 'Income Tax Ordinance', 'retained income', 'surcharge', and 'tax liabilities', which are essential for legal professionals and businesses navigating the complexities of tax law. |
| Court |
Sindh High Court
|
| Entities Involved |
Commissioner of Income Tax,
Pakistan Tobacco Company Ltd.
|
| Judges |
MAMOON KAZI,
SALAHUDDIN MIRZA
|
| Lawyers |
Nasrullah Awan for Applicant,
Khalifa Salah-ud-Din for Respondent
|
| Petitioners |
THE COMMISSIONER OF Income Tax, CENTRAL ZONEB, KARACHI
|
| Respondents |
Messrs BERGER PAINTS PAKISTAN LTD., KARACHI
|
| Citations |
1991 SLD 145,
1991 PTD 841,
(1991) 64 TAX 112
|
| Other Citations |
1988 P T D 66,
1988 P T D (Trib.) 155
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
10
|