| Case ID |
1572c3c9-4973-4d43-b2b2-969954c8d57c |
| Body |
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| Case Number |
Civil Petitions for Special Leave to Appeal Nos. 2 |
| Decision Date |
Feb 27, 1980 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan held that the Thal Development Authority is considered a 'local authority' under the provisions of the Income Tax Act, 1922. Consequently, it is not liable for income tax, and any notices of demand issued to the Authority were deemed illegal. The judgment followed the precedent set in the case of Deputy Managing Director, National Bank of Pakistan and others v. Ataul Haq. The court found that the powers conferred upon the Authority were comparable to those of a local authority, including the power to levy taxes. The court dismissed the petitions filed by the petitioner, emphasizing that the core issue was whether the Authority was indeed a local authority, which was affirmed. Additionally, the petitions were dismissed as time-barred. |
| Summary |
This case revolves around the interpretation of the status of the Thal Development Authority under the Income Tax Act, 1922. The Supreme Court of Pakistan analyzed whether the Authority qualified as a 'local authority' and thus was exempt from income tax obligations. The court relied on previous judgments, particularly the Deputy Managing Director case, to support its conclusion that the Authority's extensive powers aligned it with local authorities. The implications of this ruling are significant for similar entities and their tax liabilities. The case highlights the importance of understanding the definitions and classifications within tax law, particularly for governmental and quasi-governmental bodies. Legal practitioners and entities involved in public service or development should take note of this ruling as it may set a precedent for future cases involving local authorities and tax liabilities. The decision underscores the need for clarity in legal definitions and the protection of local authorities from undue taxation. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
National Bank of Pakistan,
Thal Development Authority,
Thal Industrial Corporation Ltd.
|
| Judges |
Dorab Patel,
Nasim Hasan Shah
|
| Lawyers |
S. Abdul Haque, Senior Advocate,
Iftikhar-ud-Din Ahmad, Advocate-on-Record
|
| Petitioners |
Commissioner of Income Tax, Lahore
|
| Respondents |
Chief Secretary, Government of the Punjab, Lahore
|
| Citations |
1980 SLD 72,
1980 PTD 329
|
| Other Citations |
P L D 1965 S C 201
|
| Laws Involved |
Income Tax Act, 1922,
Thal Development Act, 1949
|
| Sections |
3,
4,
2(9),
45
|