| Case ID |
2635406f-87a4-44ec-a274-efe656f472d8 |
| Body |
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| Case Number |
D-2741 of 1945 |
| Decision Date |
Jan 01, 1945 |
| Hearing Date |
Jan 01, 1945 |
| Decision |
The Federal Court of Pakistan ruled that the provisions of the Indian Income-tax Act concerning the assessment of income from outside British India were valid and within the jurisdiction of the Indian Legislature. The court held that the criteria for determining the residence of a company under Section 4-A(c) were appropriate and not ultra vires. The court emphasized the importance of the connection between the company and the income earned in British India, affirming the assessment made by the income tax authorities based on the company's income. The appeal was dismissed with costs, allowing for a leave to appeal to His Majesty in Council. |
| Summary |
In the case of Wallace Brothers & Co. Ltd. vs. Commissioner of Income Tax, the Federal Court of Pakistan addressed the legitimacy of the Indian Income-tax Act's provisions relating to the taxation of income from foreign sources. The case arose from an appeal against a decision of the Bombay High Court regarding the assessment of the appellant for the year 1939-40, focusing on the definition of 'residence' for tax purposes. The court concluded that the legislative framework established by the Indian Income-tax Act was sound and upheld the authority's decision to include foreign income in the tax assessment based on the company's operations. This ruling is significant for understanding the application of tax law in the context of cross-border income and residency definitions. Keywords include 'Indian Income-tax Act', 'tax assessment', 'corporate residence', and 'foreign income tax'. |
| Court |
Federal Court, Pakistan
|
| Entities Involved |
Commissioner of Income Tax,
Wallace Brothers & Co. Ltd.
|
| Judges |
SIR PATRICK SPENS, C.J.,
SIR SRINIVASA VARADACHARIAR,
SIR MUHAMMAD ZAFRULLA KHAN, J.
|
| Lawyers |
Not available
|
| Petitioners |
Wallace Brothers & Co. Ltd.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1945 SLD 65,
(1945) 13 ITR 39
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Indian Income-tax Act
|
| Sections |
4-A(c),
4(1)(b),
66,
205
|