| Case ID |
213c39b6-667d-4895-a7f5-37700957ce82 |
| Body |
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| Case Number |
Tax Reference No. 3 of 1993 |
| Decision Date |
Dec 11, 2004 |
| Hearing Date |
Dec 11, 2003 |
| Decision |
The Lahore High Court ruled that the sale of the petitioner's share in Al-Rauf Hotel was a business transaction rather than an isolated event. The Income Tax Appellate Tribunal's decision to classify the sale as part of a trading activity was upheld. The court found that the petitioner was regularly engaged in buying and selling property and had declared income from such transactions in previous assessment years. Therefore, the profits from the sale were rightly included in the taxable income. The court also addressed procedural concerns regarding the constitution of the Tribunal but ultimately concluded that the Tribunal's findings were supported by evidence. The reference application was disposed of accordingly. |
| Summary |
In the case of Mst. Rashida Begum versus the Income Tax Appellate Tribunal, the Lahore High Court addressed the classification of a property sale as a business transaction under the Income Tax Ordinance, 1979. The petitioner contested the tax authorities' stance that the sale of her share in Al-Rauf Hotel constituted trading activity, arguing it was an isolated transaction. The court examined the evidence of regular income from property sales and the petitioner's involvement in real estate. It determined that the nature of the transaction aligned with the petitioner's business activities, thereby affirming the tax assessment. The case highlights critical aspects of income tax law, including the interpretation of business versus isolated transactions, as well as procedural adherence in Tribunal hearings. This decision serves as a precedent for similar cases in tax law, emphasizing the importance of intention and evidence in determining the nature of property transactions. |
| Court |
Lahore High Court, Rawalpindi Bench
|
| Entities Involved |
Not available
|
| Judges |
MAULVI ANWAR-UL-HAQ,
ABDUL SHAKOOR PARACHA
|
| Lawyers |
Mr. Sikandar Hayat Khan,
Miss Shaheena Akbar
|
| Petitioners |
Mst. RASHIDA BEGUM
|
| Respondents |
another,
INCOME TAX APPELLATE TRIBUNAL, ISLAMABAD BENCH
|
| Citations |
2004 SLD 3433,
2004 PLJ 901
|
| Other Citations |
Radha Vilas Karyalaya, Varanasi v. Commissioner of Income Tax, Lucknow (71 I.T.R. 279),
Michaeal A Kallivapalil v. Commissioner of Income Tax, Kerala ((1976) 102 ITR 202),
Commissioner of Income Tax v. Anandlal Bechari Al Co. ((1978) 37 Tax 233),
Saroj Kumar Mazumdar v. Commissioner of Income Tax, West Bengal ((1959) 37 ITR 242),
Ramnaram Sons (Pr.) Ltd. v. Commissioner of Income Tax, Bombay (1961) 41 ITR 534,
V.S.R. Firm v. Commissioner of Income Tax, Madras (1963) 47 ITR 720,
Shri Ram JHA v. Commissioner of Income Tax, U.P. (1957) 31 ITR 987,
Commissioner of Income Tax v. Muhammad Mohideen (1989) 176 ITR 393,
Julian Hoshang Dinshaw Trust and others v. Income Tax Officer, Circle XVIII South Zone, Karachi (1992) 65 Tax 102
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
136(2),
27
|