| Case ID |
2fa5c640-6759-4652-acbf-f50451eb6299 |
| Body |
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| Case Number |
I.T.A. No.693/LB of 1990-91 |
| Decision Date |
Sep 14, 1991 |
| Hearing Date |
Jul 08, 1991 |
| Decision |
The appeal was filed by a general insurance company regarding the assessment year 1989-90. The main issues included the deduction of Zakat and the computation of interest income under the Income Tax Ordinance. The Tribunal ruled that the tax concession granted by the Zakat and Ushr Ordinance would apply to the appellant, allowing the deduction of Zakat from taxable income. However, the Tribunal upheld the decision regarding the computation of interest income and the restrictions placed on depreciation allowances as per the applicable rules. The final determination was that the appeal was dismissed except for the allowance of Zakat, which was directed to be deducted from the taxable income. |
| Summary |
In the Income Tax Appellate Tribunal case I.T.A. No.693/LB of 1990-91, the tribunal addressed significant issues surrounding the Income Tax Ordinance of 1979 and the Insurance Act of 1938. The case highlighted the complexities involved in tax deductions for general insurance companies, particularly concerning Zakat payments. The Tribunal ruled in favor of the appellant regarding Zakat deductions, clarifying that the provisions of the Zakat and Ushr Ordinance take precedence over conflicting rules within the Income Tax Ordinance. The decision emphasized the necessity of adhering to specific regulations while computing taxable income, particularly regarding interest income and depreciation allowances. This case is pivotal for insurance companies navigating tax regulations, ensuring compliance while maximizing allowable deductions. Key topics include Income Tax Ordinance, Zakat deductions, Insurance Act compliance, and depreciation limits. The ruling sets a precedent for future cases involving similar tax issues, reinforcing the importance of understanding the interplay between different tax laws. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan, Chairman,
A.A. Zuberi, Accountant Member,
Abrar Hussain Naqvi, Judicial Member
|
| Lawyers |
Muhammad Sarfraz, CA. for Appellant,
S. Roomi Shah, D.R. for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1992 SLD 191,
1992 PTD 1294,
(1992) 66 TAX 58
|
| Other Citations |
1989 PTD 142,
1991 PTD 401,
PLD 1991 SC 787,
PLD 1982 Kar. 684,
1989 PTD 1090,
1965 PTD 475,
1988 PTD 140,
PLD 1985 SC 109,
1989 PTD 192
|
| Laws Involved |
Income Tax Ordinance, 1979,
Insurance Act, (IV of 1938)
|
| Sections |
FourthSched.Rr.5&8,
SecondSched.,
C1.72&Ss.30&31,
Ss.23&24,
15(1)
|