| Case ID |
2badf234-fc42-4f52-9564-bf134e5b79db |
| Body |
View case body. Login to View |
| Case Number |
I.T.As. Nos. 1100/KB and 707/KB of 1997-98 |
| Decision Date |
Jul 30, 1998 |
| Hearing Date |
Apr 22, 1998 |
| Decision |
The appeals were dismissed, confirming the First Appellate Authority's direction regarding the allowance for depreciation on leased assets against the assessee's business income for the year. The Tribunal upheld the principle that depreciation on leased assets should not exceed the income derived from lease rentals, thereby ensuring compliance with the provisions of the Income Tax Ordinance, 1979. The case highlighted the necessity for accurate calculation methods for unabsorbed depreciation and clarified the limits of allowances against income from lease rentals. The ruling emphasized the importance of adhering to statutory provisions while determining tax liabilities. |
| Summary |
In the case of I.T.As. Nos. 1100/KB and 707/KB of 1997-98, the Appellate Tribunal Inland Revenue addressed significant issues concerning the Income Tax Ordinance, 1979, particularly focusing on Section 23(1)(v) regarding depreciation allowances on leased assets. The case involved a banking company that derived income from lease rentals and sought relief on the restriction of depreciation allowances imposed by the Assessing Officer. The Tribunal upheld the First Appellate Authority's findings that depreciation should be calculated based on net income from lease rentals while confirming that allowances must not exceed this income. The decision underscores the complexities involved in tax calculations for leased assets, reinforcing the provisions of the Income Tax Ordinance and the necessity for precise accounting practices in financial reporting. This ruling serves as a pivotal reference for taxpayers and legal practitioners navigating the intricacies of tax law, particularly in the context of depreciation allowances and their implications on business income. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
S. M. Sibtain, Accountant Member,
Tahseen Ahmed Bhatti, Judicial Member
|
| Lawyers |
Amjad Jamshed, D. R.,
Chaman Lal, DCIT for Appellant,
Fatehali W. Vallani,
Abdul Mateen,
Miss Dhaleh Akbar for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1999 SLD 674 = 1999 PTD 1346
|
| Other Citations |
PLD 1960 SC (Pak.) 168
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
23,
23(1)(v)
|