| Case ID |
16cf59a0-9a6d-497e-9a99-1c79c49bea87 |
| Body |
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| Case Number |
Civil Appeals Nos. 77 to 113 of 1975 and 119 of 19 |
| Decision Date |
May 17, 1987 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the appeals after reviewing the judgments of the Lahore High Court. The core issue revolved around the interpretation of section 26-A of the Income Tax Act, 1922, particularly concerning the registration of firms based on partnership deeds executed after prior oral agreements. The Court concluded that a firm may be validly registered based on a partnership deed executed even at the end of the previous year, provided that the essential terms were agreed upon beforehand. The Court emphasized that the amendment introduced by the Finance Act of 1965 allowed for retrospective effect of the partnership deed, thus enabling registration under specific conditions. The appeals were dismissed with no order as to costs, acknowledging the importance of the legal questions involved. |
| Summary |
This landmark case, decided by the Supreme Court of Pakistan, addresses critical issues surrounding the Income Tax Act, specifically section 26-A. The case involves the registration of a partnership firm, with the Court ruling that a partnership can be recognized legally even if the formal deed is executed after an oral agreement. This ruling is significant as it clarifies the interpretation of 'constituted by' in legal terms, allowing for retrospective effects in partnership registrations. This decision is crucial for legal practitioners specializing in tax law and partnership disputes, as it sets a precedent for similar cases in the future. The Court's decision to condone a time-barred appeal further emphasizes its commitment to addressing substantial legal questions, making this case a vital reference point for tax law in Pakistan. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
COMMISSIONER OF Income Tax, RAWALPINDI,
Messrs LYALLPUR COLD STORAGE, LAHORE ROAD, LYALLPUR
|
| Judges |
MOHAMMED HALEEM, C.J.,
NASIM HASAN SHAH,
ALI HUSSAIN QAZILBASH,
MIAN BURHANUDDIN KHAN
|
| Lawyers |
Muhammad Ilyas Khan, Advocate Supreme Court,
Rana Meqbool Ahmad Qadri, Advocate-on-Record,
Inayat Hussain Shah, Advocate-on-Record,
Ch. Muhammad Ishaque, Advocate Supreme Court,
Ch, Akhtar Ali, Advocate-on-Record,
M.Aslam Chattha, Advocate-on-Record,
M.A. Qadri, Advocate-on-Record,
Imtiaz Muhammad Khan, Advocate-on-Record
|
| Petitioners |
COMMISSIONER OF Income Tax, RAWALPINDI
|
| Respondents |
Messrs LYALLPUR COLD STORAGE, LAHORE ROAD, LYALLPUR and others
|
| Citations |
1988 SLD 51,
1988 PTD 394,
(1987) 56 TAX 112,
(1988) 58 TAX 1,
1987 PLD 436
|
| Other Citations |
Commissioner of Income-tax v. Muhammad Qudratullah P L D 1966 Dacca 454,
Commissioner of Income-tax, East Pakistan, Dacca v. Noor Hussain P L D 1964 S C 657,
Law and Practice of Income-tax, Fourth Edn., Vol. I, by Kanga and Palkhivala, p. 61
|
| Laws Involved |
Income Tax Act, 1922,
Supreme Court Rules, 1980
|
| Sections |
26A,
2(11)(c)(ii),
O.XII,R.2
|