| Case ID |
0a067b93-f9bd-4607-97bb-dc7295ef3d2d |
| Body |
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| Case Number |
I.T.A. No. 1430/IB/2018 & MA (AG) No. 02/IB/2020 |
| Decision Date |
Sep 01, 2020 |
| Hearing Date |
Sep 01, 2020 |
| Decision |
The Appellate Tribunal Inland Revenue found that the lower authorities misconstrued the provisions of Clause 132 of Part-I of the Second Schedule to the Income Tax Ordinance, 2001. The Tribunal concluded that the mere change of name and shareholders of the Appellant Company does not amount to reconstruction of a company. Thus, the Appellant Company is entitled to exemption under the relevant clause and is not obliged to pay the minimum tax under section 113 of the Ordinance. The decision emphasizes the importance of interpreting the legal definitions accurately to ensure fair taxation practices for companies in the energy sector. |
| Summary |
In the case of M/S Foundation Wind Energy-I Limited vs. Commissioner Inland Revenue, the Appellate Tribunal Inland Revenue addressed the appeal concerning the exemption from minimum tax under the Income Tax Ordinance, 2001. The Appellant Company, engaged in wind energy production, contested a decision by the tax authorities, which denied its claim for tax exemption based on the premise of business reconstruction. The Tribunal analyzed the legal definitions surrounding business reconstitution and determined that the change in ownership and name did not constitute a reconstruction of business operations. This ruling is significant as it clarifies the application of tax exemptions for energy sector companies and reinforces the necessity for precise legal interpretation in tax assessments. This case highlights the ongoing discussions around tax laws affecting renewable energy companies, aiming to promote investment and development in sustainable energy solutions. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Foundation Wind Energy-I Limited,
Fauji Group,
Beacon Energy Limited
|
| Judges |
M.M. AKRAM,
IMTIAZ AHMAD
|
| Lawyers |
Mr. Aazar Abdul Hameed, FCA,
Mr. Muhammad Zaheer Qureshi, DR
|
| Petitioners |
M/S FOUNDATION WIND ENERGY-I LIMITED
|
| Respondents |
COMMISSIONER INLAND REVENUE, CORPORATE ZONE, RTO, RAWALPINDI
|
| Citations |
2020 SLD 1525,
(2021) 124 TAX 163
|
| Other Citations |
1995 PTD 360,
2009 CLD 839,
1983 47 TAX 197
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
2(59A)(iii),
2(59A)(6),
113,
113C,
120(1)(b),
122(5A),
132(a),
132(b)
|