Legal Case Summary

Case Details
Case ID 0c5c5862-c313-4baf-8321-ebf0bd3af472
Body View case body.
Case Number Writ Petition No. 594 of 1965
Decision Date Apr 29, 1969
Hearing Date
Decision The Lahore High Court ruled that the petitioner, K. S. B. Pumps Company Limited, was entitled to an exemption from income tax for the entire period from October 1960 to October 1964. The court found that the company's operations did not constitute a new business formed by the transfer of a building that was in use prior to April 1, 1959. The court determined that the Board of Revenue's order limiting the exemption to only a brief period was without lawful authority. The court clarified that the definition of 'property' and 'building' were not interchangeable in the context of the Income Tax Act, thereby supporting the petitioner's claim for tax exemption.
Summary In the landmark case of K. S. B. PUMPS CO. LTD. v. PAKISTAN, decided by the Lahore High Court on April 29, 1969, the court examined the applicability of tax exemptions under the Income Tax Act, 1922. The petitioner, an industrial undertaking engaged in manufacturing centrifugal and deepwell turbine pumps, sought exemption from income tax for a specified period. The court explored the definitions and interpretations of 'new business' and 'building' under the relevant sections of the law. The decision emphasized that a mere lease of property does not equate to the transfer of a building, thereby affirming that the petitioner was entitled to the full tax holiday without restrictions. This case is significant for industrialists and legal practitioners alike, as it clarifies the legal framework governing tax exemptions and the criteria for eligibility. The detailed judgment not only addresses the nuances of tax law but also sets a precedent for future cases involving similar issues.
Court Lahore High Court
Entities Involved Central Board of Revenue, K. S. B. PUMPS CO. LTD., Pakistan Ordinance Factory
Judges MUSHTAQ HUSSAIN, SHAMEEM HUSAIN KADRI
Lawyers A.K. Brohi, Sharif Hussain Bokhari, A.H. Najafi, Sh. Abdul Haq
Petitioners K. S. B. PUMPS CO. LTD.
Respondents PAKISTAN Through, the Secretary, Ministry of Finance, Government of Pakistan, Rawalpindi, Central Board of Revenue, Government of Pakistan, Rawalpindi
Citations 1969 SLD 741, (1969) 20 TAX 126, 1969 PTD 908, 1969 PLD 830
Other Citations Not available
Laws Involved Income Tax Act, 1922
Sections 15BB(2)(e), 15BB, 15BB(4)