| Case ID |
238be0d5-ce8e-44ad-8c9c-e96a7398d5c5 |
| Body |
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| Case Number |
I. T. A. No. 1732/LB of 1985-86 |
| Decision Date |
Oct 29, 1987 |
| Hearing Date |
Aug 19, 1987 |
| Decision |
The appeal was filed by the assessee against the refusal to grant registration under section 68 of the Income Tax Ordinance. The court found that the firm was duly constituted under an instrument of partnership fulfilling all requirements and could not be refused registration merely because its object was to avoid or reduce tax liability. The court emphasized that avoiding tax is not the same as tax evasion and upheld that legitimate arrangements to reduce tax liability are permissible under the law, provided they do not violate statutory requirements. Consequently, the court directed that registration should be granted unless the assessing officer finds other faults. |
| Summary |
This case revolves around the refusal of the Income Tax Officer (I.T.O.) to grant registration to a firm under section 68 of the Income Tax Ordinance, 1979. The court examined the validity of the refusal, emphasizing the distinction between tax avoidance and tax evasion. The case highlighted the importance of the genuineness of a firm as constituted under the partnership deed. The court's decision reinforced the notion that as long as a partnership is formed in accordance with legal requirements, it should not be denied registration based solely on assumptions regarding tax avoidance. The ruling is significant for taxpayers and legal practitioners, as it clarifies the legal boundaries of tax planning strategies. This case is relevant for current discussions on tax law and compliance, making it an essential reference for understanding the application of the Income Tax Ordinance. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Abrar Hussain Naqvi, Judicial Member
|
| Lawyers |
Siraj-ud-Din Khalid for Appellant,
Nazir Ahmed Saleemi A.C., D.R. for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1988 SLD 15,
1988 PTD 112,
(1988) 57 TAX 50
|
| Other Citations |
C.I.T. v. Hussain Corporation, Karachi 1983 P T D 289,
Commissioner of Income-tax v. Sivkasi Match Exporting Company (1964) 53-I T R 204,
C.I.T. v. A. Raman & Company (1967) 67-I T R 11,
Aruna Group of Estates v. State of Madras (1965) 55-I T R 642
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
68
|