| Case ID |
22ed2c50-dfb1-4307-930b-d7a69cb385ac |
| Body |
View case body. Login to View |
| Case Number |
I.T.R.A. No.657 and C.M. No.728 of 2010 |
| Decision Date |
Sep 05, 2012 |
| Hearing Date |
|
| Decision |
The Sindh High Court dismissed the reference application filed by the applicant, Commissioner Inland Revenue, Karachi. The court concluded that the findings of the Appellate Tribunal Inland Revenue regarding the non-resident status of Messrs Centre for Management Sciences were justified. The court noted that the income received by the non-resident company from Pakistan was exempt from tax under the United Kingdom/Pakistan Double Taxation Convention, highlighting that the company did not have a permanent establishment in Pakistan. The addition made to the company's income for the non-deduction of withholding tax was ruled as unjustified. Therefore, the reference application was dismissed in limine, affirming the decisions of the lower appellate forums. |
| Summary |
In the case of I.T.R.A. No.657 and C.M. No.728 of 2010, the Sindh High Court addressed the matter of income tax concerning a non-resident company, Messrs Centre for Management Sciences, located in Karachi, Pakistan. The core issue revolved around whether the income received by the company constituted taxable business profits under the Income Tax Ordinance, 2001, specifically in relation to sections 2(41)(d) and 152. The court examined the implications of the United Kingdom/Pakistan Double Taxation Convention, which provides exemptions for profits that do not arise from a permanent establishment in Pakistan. The findings emphasized that the company was a resident of the UK and did not maintain a permanent establishment in Pakistan, thus affirming the tax exemption. The decision underscored the importance of international tax treaties in determining tax liabilities for non-resident entities, highlighting a significant aspect of cross-border taxation and compliance. This ruling is crucial for legal practitioners and tax advisors dealing with international taxation issues, especially in contexts involving non-resident companies and the application of double taxation treaties. |
| Court |
Sindh High Court
|
| Entities Involved |
COMMISSIONER INLAND REVENUE, KARACHI,
Messrs CENTRE FOR MANAGEMENT SCIENCES, KARACHI
|
| Judges |
AQEEL AHMED ABBASI,
FAROOQ ALI CHANNA
|
| Lawyers |
S. Mohsin Imam
|
| Petitioners |
COMMISSIONER INLAND REVENUE, KARACHI
|
| Respondents |
Messrs CENTRE FOR MANAGEMENT SCIENCES, KARACHI
|
| Citations |
2013 SLD 5,
2013 PTD 1
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
2(41)(d),
21(c),
107,
152
|