| Case ID |
2c7f90b5-3a3f-4a3d-898b-45a4d8c9da85 |
| Body |
View case body. Login to View |
| Case Number |
Writ Petition No. 13322 of 2000 |
| Decision Date |
Jul 06, 2000 |
| Hearing Date |
Jul 06, 2000 |
| Decision |
The Lahore High Court ruled on the validity of a circular issued by the Central Board of Revenue which stated that industrial units declaring losses were not exempt from minimum turnover tax under Section 80-D of the Income Tax Ordinance, 1979. The court held that this interpretation undermined the authority of adjudicating officers and rendered the circular void. The judgment emphasized that exemptions granted under the law should be upheld and not circumvented by administrative directives. The case highlighted the importance of judicial interpretation over administrative rulings in tax matters. |
| Summary |
This case involves the Lahore High Court's decision on the applicability of tax exemptions for industrial units under the Income Tax Ordinance, 1979, particularly focusing on Section 80-D and related clauses. The court addressed the central issue of whether industrial units declaring losses were subject to minimum turnover tax. The judicial analysis revealed that the Central Board of Revenue's circular incorrectly interpreted the law, leading to confusion regarding tax obligations for entities suffering losses. The court's decision reinforced the principle that tax exemptions should be clearly delineated in law and that administrative bodies cannot alter judicial determinations. This case is significant for tax law practitioners and businesses as it clarifies the legal landscape regarding tax exemptions and the powers of tax authorities. |
| Court |
Lahore High Court
|
| Entities Involved |
CENTRAL BOARD OF REVENUE,
KOHINOOR RAIWIND MILLS LIMITED
|
| Judges |
MALIK MUHAMMAD QAYYUM, J
|
| Lawyers |
Imtiaz Rashid Siddiqui for Petitioners,
Muhammad Ilyas Khan and Shafqat Mahmood Chauhan for Respondents
|
| Petitioners |
another,
KOHINOOR RAIWIND MILLS LIMITED
|
| Respondents |
2 others,
CENTRAL BOARD OF REVENUE through Member, Income Tax, Government of Pakistan, Islamabad
|
| Citations |
2000 SLD 474,
2000 PTD 3351,
2001 PTCL 179,
(2000) 82 TAX 539
|
| Other Citations |
Messrs Elahi Cotton Mills Ltd. and others v. Federation of Pakistan and others PLD 1997 SC 582,
Messrs Central Insurance Co. v. The Central Board of Revenue, Islamabad and others 1993 SCMR 1232,
Central Board of Revenue, Islamabad and others v. Sheikh Spinning Mills Limited, Lahore 1999 SCMR 1442
|
| Laws Involved |
Income Tax Ordinance, 1979,
Constitution of Pakistan, 1973,
Protection of Economic Reforms Act, 1992
|
| Sections |
80D,
Second Schedule, cls.(118C),(118D)(118-E),
199,
13
|