| Case ID |
15a94bb6-7191-405c-a909-0120f42336c4 |
| Body |
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| Case Number |
ITA No. 172/1B/2009 |
| Decision Date |
Nov 17, 2015 |
| Hearing Date |
Nov 17, 2015 |
| Decision |
The appeals concerning the taxpayer and the department were reviewed and it was determined that the issues raised in these appeals were similar, leading to a common order. The taxpayer's appeals for the assessment years 2000-2001 and 2001-2002 were based on the contention that the learned CIR(A) was not justified in upholding various actions under the Income Tax Ordinance. The court found that the learned CIR(A) had made errors in the application of the law, particularly regarding the apportionment of expenses related to commission and brokerage income. The decision concluded that taxation should follow the provisions of the Income Tax Ordinance, 2001, and that the taxpayer's appeals were to be accepted for the tax years 2005 to 2007, confirming the income should be taxed under section 233 of the Ordinance. The decision also emphasized the applicability of expenses apportionment in banking, guided by established judicial precedents. |
| Summary |
The case involves a series of appeals filed by M/s Askari Bank Limited against decisions made by the Commissioner Inland Revenue (CIR). The appeals primarily contest the tax treatment of commission and brokerage income for various assessment years under the Income Tax Ordinance. The taxpayer argued that the CIR's decisions were flawed, particularly regarding the apportionment of expenses and the application of Circular No. 12 of 1991. The court examined the legal provisions relevant to the taxation of banking income and the specific sections of the Income Tax Ordinance that apply to such cases. Ultimately, the court ruled in favor of the taxpayer, affirming the appropriateness of the final tax regime for the commission and brokerage income. The decision underscores the complexities of tax law as it pertains to banking operations and highlights the importance of judicial interpretation in the assessment process. The ruling sets a precedent for similar cases in the future, ensuring clarity in the application of tax laws to banking entities. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
CIR, LTU, Islamabad,
M/s Askari Bank Limited
|
| Judges |
JAVED IQBAL, CHAIRMAN,
MUHAMMAD RIAZ, ACCOUNTANT MEMBER
|
| Lawyers |
Mr. Sadia Nazeer, ACA,
Syed Khalid Shah, DR
|
| Petitioners |
M/s Askari Bank Limited
|
| Respondents |
CIR, LTU, Islamabad
|
| Citations |
2016 SLD 252
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Income Tax Ordinance, 2001,
Income Tax Rules, 2002,
Income Tax Ordinance, 1979
|
| Sections |
13,
62,
122,
122(5A),
132,
221,
233,
67,
50(4A),
80C
|