| Case ID |
25ae4d7a-52f6-466f-ba80-346bb9f45903 |
| Body |
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| Case Number |
Civil Appeals Nos.246-K, 248-K to 253-K and 291-K |
| Decision Date |
May 02, 1989 |
| Hearing Date |
Jan 25, 1989 |
| Decision |
The Supreme Court of Pakistan, in its ruling on the Civil Appeals concerning the Commissioner of Income Tax, addressed the complexities associated with the Income Tax Act of 1922 and the Finance Ordinance of 1961. The Court evaluated the High Court's exercise of power under section 66(2) of the Income Tax Act, which permitted the framing of legal questions in connected appeals. It upheld the High Court's view on the interpretation of income tax regulations, particularly concerning the computation of total income and the share of partners in firms, affirming that the super-tax should be distributed in accordance with the partner's share of total income without restrictive definitions. The Court emphasized the necessity of a determinative order before the issuance of a demand notice as per section 29 of the Act, underscoring the legal requirement for application of mind by tax officers. The ruling resolved significant discrepancies in tax law interpretation, ensuring the protection of taxpayer rights in compliance with fiscal statutes. |
| Summary |
This case revolves around the interpretation of the Income Tax Act of 1922 and the Finance Ordinance of 1961, focusing on the appeals related to the computation of income tax for partners in firms. The Supreme Court of Pakistan reviewed the High Court's decision regarding the framing of legal questions when the Income-tax Appellate Tribunal refused a reference. The key issues included the calculation of total income, the distribution of super-tax among partners, and procedural requirements for issuing demand notices. The Court emphasized the importance of a clear application of mind by tax authorities when imposing tax liabilities. The ruling clarified that the partner's share of super-tax must correspond to their share of total income, rejecting the restrictive interpretations that could disadvantage taxpayers. This decision is pivotal for ensuring compliance with tax laws and protecting the rights of individual taxpayers against arbitrary tax assessments. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD HALEEM, C.J.,
SHAFIUR RAHMAN, J.,
ZAFFAR HUSSAIN MIRZA, J.,
SAAD SAOOD, J.,
JAN, J.,
NAIMUDDIN, J.
|
| Lawyers |
Nasrullah Awan, Advocate Supreme Court,
M.S. Chaudhry, Advocate-on-Record,
M.A.I. Qarni, Advocate-on-Record
|
| Petitioners |
THE COMMISSIONER OF INCOME TAX, WEST ZONE, KARACHI,
COMMISSIONER OF INCOME TAX, EAST ZONE, KARACHI,
COMMISSIONER OF INCOME TAX, CENTRAL ZONE A KARACHI
|
| Respondents |
ANWERALY HAJI NOOR MOHAMMAD,
Seth GHULAM ABBAS ADAM ALI,
Seth SAIFUDDIN GHULAM HUSSAIN,
Mir YUSUF ALI,
Qazi MUHAMMAD ISMAIL
|
| Citations |
1992 SLD 250,
1992 SCMR 458
|
| Other Citations |
1976 P T D 361
|
| Laws Involved |
Income Tax Act, 1922,
Finance Ordinance, 1961,
Constitution of Pakistan, 1973
|
| Sections |
66,
66(1),
66(2),
16,
29,
23(1),
23(4),
Third Schedule,
185(3)
|