| Case ID |
0a454576-5484-4205-ab2e-9113aa133035 |
| Body |
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| Case Number |
Income-tax Case No.24 of 1979 |
| Decision Date |
Oct 05, 1988 |
| Hearing Date |
|
| Decision |
The application under section 66(2) of the Income Tax Act 1922 filed by the Department was dismissed. The Tribunal's decision to allow the assessee's claim regarding the loss of current assets due to the fall of East Pakistan was upheld. The court emphasized that the Assessing Officer failed to adhere to the principles outlined in the relevant C.B.R. Circular, which dictates the tax treatment for losses incurred in such circumstances. The court ruled that the treatment meted out to the assessee was unjust and unfair, as the liabilities were not properly accounted for in the assessment of the current assets. The application was dismissed on the basis that the factual position elucidated by the Tribunal did not support the Department's claim. |
| Summary |
In the case concerning the Income Tax Act, 1922, the Sindh High Court dealt with the complexities of tax law as it pertained to the losses incurred by the Messrs Amin Mohiuddin Foundation Ltd during the tumultuous period of East Pakistan's fall. The case revolved around the interpretation of Circular No. 11 issued by the Central Board of Revenue, which provided guidance on how to assess losses from current assets. The court found that the Income Tax Officer's assessment was flawed in that it did not fully consider the facts and circumstances surrounding the losses. The Tribunal had previously ruled in favor of the respondent, stating that the loss of assets should not be adjusted against the liabilities, which the court upheld. This case highlights the importance of accurate fact-finding and adherence to legal principles in tax assessments, especially in sensitive historical contexts. The decision reinforces the necessity for tax authorities to follow established guidelines and treat charitable organizations fairly, ensuring that the principles of justice and equity are applied in tax law. |
| Court |
Sindh High Court
|
| Entities Involved |
|
| Judges |
SALEEM AKHTAR,
IMAM ALI G. KAZI
|
| Lawyers |
Shaikh Haider,
Iqbal Naeem Pasha
|
| Petitioners |
COMMISSIONER OF INCOME TAX, CENTRAL ZONE A, KARACHI
|
| Respondents |
Messrs AMIN MOHIUDDIN FOUNDATION Ltd
|
| Citations |
1989 SLD 78,
1989 PTD 581,
(1989) 60 TAX 66
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
66(2),
5(8)
|