| Case ID |
223c5ea4-fa5b-45c5-8061-02196e08af0c |
| Body |
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| Case Number |
I.TA, No.2779/KB of 1986-87 |
| Decision Date |
Jan 05, 1989 |
| Hearing Date |
Dec 26, 1988 |
| Decision |
The appeal filed by the Department against the order of the learned A.A.C. was dismissed. The Tribunal upheld the decision that the Respondent, a Co-operative Society, was entitled to claim deductions for expenses incurred in earning income from interest. The arguments presented by the Department's learned D.R. were found to lack legal support, and the previous case law cited was deemed inapplicable to the current case. The Tribunal confirmed that all expenditures laid out or expended wholly and exclusively for the purpose of earning income should be deducted in computing taxable income, thus validating the A.A.C.'s order. |
| Summary |
In this Income Tax Appellate Tribunal case, the core issue revolved around the income tax deductions claimed by a Co-operative Society for expenses related to earning interest income. The Tribunal reviewed the arguments from both sides, with the Department challenging the deductions based on the Society's primary function of member welfare, rather than earning interest. The Tribunal concluded that the law allows for deductions for any expenses incurred wholly and exclusively for generating income, a principle that is well-established in previous case law. The decision emphasized the importance of recognizing legitimate business expenses in determining taxable income, thus fostering a fair approach to income taxation for cooperative entities. This ruling reinforces the rights of taxpayers to claim deductions for necessary expenditures in the pursuit of income, aligning with the principles of the Income Tax Ordinance, 1979. Keywords: Income Tax, Deductions, Cooperative Society, Tax Law, Income Tax Ordinance. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Saiyid Saeed Ashhad
|
| Lawyers |
Yusuf Sharih, D.R. for Appellant,
M. Ramzan Dossa, CA. for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Co-operative Society
|
| Citations |
1989 SLD 32,
1989 PTD 254
|
| Other Citations |
(1975) 101 I T R 1531,
I.T.A No. 2440/KB of 1986-87,
I.T.As Nos 3961 to 3966/KB of 1987-88,
I.T.A No. 2291/KB of 1986-87
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
31
|