| Case ID |
0ff10afa-3fa6-4b42-accf-b5c64e7c62d2 |
| Body |
View case body. Login to View |
| Case Number |
I.T.As. Nos.2143 to 2145/LB of 2012 |
| Decision Date |
Jul 19, 2013 |
| Hearing Date |
|
| Decision |
The decision of the Appellate Tribunal Inland Revenue concluded that the provisions of section 8(5) of the Oil and Gas Regulatory Authority Ordinance, 2002, shall prevail over section 3 of the Income Tax Ordinance, 2001. The tribunal ruled that the Gas Development Surcharge (GDS) paid by the taxpayer is an allowable deduction under the Income Tax Ordinance, as it is an expenditure incurred wholly and exclusively for the purpose of business. The tribunal emphasized that the OGRA Ordinance is a special law designed to facilitate and regulate the oil and gas sector and therefore should take precedence over the general provisions of the Income Tax Ordinance. The tribunal's ruling underscores the importance of special legislation in tax matters and reinforces the principle that specific statutes governing particular industries can override general tax laws when there is a conflict. |
| Summary |
This case involves the interpretation of tax laws concerning the admissibility of the Gas Development Surcharge (GDS) under the Income Tax Ordinance, 2001 and the Oil and Gas Regulatory Authority Ordinance, 2002. The Appellate Tribunal Inland Revenue addressed the conflict between the two statutes and determined that the OGRA Ordinance is a special law that governs the oil and gas sector, thus taking precedence over the general provisions of the Income Tax Ordinance. The case highlights the legal principles surrounding special versus general laws, particularly in tax matters. The tribunal ruled that GDS should be treated as an allowable deduction for income tax purposes, reflecting the legislative intent to allow such expenses as necessary for conducting business in the regulated gas industry. This ruling is significant for entities engaged in the oil and gas sector, as it clarifies the treatment of specific charges under tax law and reinforces the principle of special legislation in tax matters. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
CH. ANWAAR-UL-HAQ, JUDICIAL MEMBER,
SABIHA MUJAHID, ACCOUNTANT MEMBER
|
| Lawyers |
Khawaja Farooq Saeed, Advocate High Court,
Khawaja Adnan Zahir CIR,
Muhammad Tahir ACIR,
Ahmad Shuja Khan ACIR,
Munir Ahmad Chaudhry DCIR
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2014 SLD 1479 = 2014 PTD 397
|
| Other Citations |
Mst. Imam Bibi v. Allah Ditta and others PLD 1989 SC 384,
Maxwell on Interpretation of Statutes, Eleventh Edition, at page 168,
Crawford on Statutory Construction, 1940 Ed. p. 429,
Craies on Statute Law, Sixth Ed., P.376,
2004 PTD (Trib.) 204,
2012 PTD 969,
1996 PTD 408,
1999 PTD 793 (Trib.)
|
| Laws Involved |
Income Tax Ordinance, 2001,
Oil and Gas Regulatory Authority Ordinance, 2002
|
| Sections |
2(29C),
3,
20,
20(1),
49(4),
54,
60A,
60B,
65B,
122(5A),
8(5),
43
|