| Case ID |
05e25b20-4060-444d-99ba-a5c378aff043 |
| Body |
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| Case Number |
Civil Appeal No. 285 of 1980 |
| Decision Date |
Jun 13, 1990 |
| Hearing Date |
Jun 09, 1990 |
| Decision |
The Supreme Court granted leave to appeal from the Lahore High Court's decision regarding the interpretation of the Income Tax Act, specifically concerning the liability of an agent to deduct income tax for non-residents. The Court determined that the appellant, as an agent for a foreign supplier, was not required to deduct taxes as they were liable to pay the taxes themselves. The judgment of the Lahore High Court was overturned, and the appeal was allowed, confirming the Tribunal's decision that the appellant was not in default for failing to deduct the tax. |
| Summary |
In the case of Civil Appeal No. 285 of 1980, the Supreme Court of Pakistan addressed crucial issues related to the interpretation of the Income Tax Act, 1922. The case revolved around the responsibilities of agents in deducting income tax for non-residents. The Court emphasized that liability does not solely depend on assessment; rather, it is a declaration created by the Income Tax Act. The ruling clarified that agents are not obliged to deduct taxes if they are themselves liable to pay them. The decision set a significant precedent regarding tax liabilities and the interpretation of statutory obligations, providing clarity for future cases involving non-resident taxation and agent responsibilities. This case highlights the importance of understanding the legal definitions of 'liable' and the implications of the Income Tax Act on agents dealing with non-residents, which is essential for legal practitioners and tax professionals. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
NAIMUDDIN,
ABDUL QADEER CHAUDHRY,
AJMAL MIAN
|
| Lawyers |
Muhammad Amin Butt,
Maqbool Ahmad Qadri,
A.H. Najfi
|
| Petitioners |
Messrs Noon Sugar Mill S Limited
|
| Respondents |
The Commissioner of Income Tax, Rawalpindi
|
| Citations |
1990 SLD 173,
1990 PLD 1156
|
| Other Citations |
Littlewood v. George Wimpey & Co. Ltd.,
British Overseas Airways Corporation (1953)2 All ELR 915,
Roberts v. Roberts (1902) 2 All ELR 967,
Whitney v. Inland Revenue Commissioners 1926 AC 37,
Lt: Col.Nawabzada Muhammad Amir Khan v. The Controller of Estate Duty, Government of Pakistan, Karachi and another PLD 1902 SC 335,
Wallace Brothers and Co., Ltd. v. Commissioner of Income-tax, Bombay City and Bombay Suburban District 1948 (16) I.T.R. 240,
Chatturam Horilram Ltd. v. Commissioner of Income-tax, Bihar and Orissa 1955 (27) I.T.R. 709
|
| Laws Involved |
Income Tax Act, 1922,
Constitution of Pakistan, 1973
|
| Sections |
18,
18(3B),
18(7),
42,
43,
185(3)
|