| Case ID |
31cabbf2-b773-4d05-b069-58b760dea371 |
| Body |
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| Case Number |
I.T.As. Nos. 861/LB and 862/LB of 2008 |
| Decision Date |
Mar 08, 2010 |
| Hearing Date |
|
| Decision |
The Appellate Tribunal vacated the order of the First Appellate Authority and remanded the case for adjudication on contentious issues. The Tribunal found that the interest income of the power generation project had been adjudicated by the hierarchy of courts up to the Supreme Court of Pakistan, and that any conflict between the Taxation Officer's treatment and the Supreme Court's ruling constituted a mistake apparent on record. The Tribunal emphasized that the matter was controversial and should be resolved under the provisions of Section 122 of the Income Tax Ordinance, 2001 rather than through rectification under Section 221. |
| Summary |
The case revolves around the taxation of interest income generated by a power generation project, which was claimed to be exempt under Clause (132) of the Income Tax Ordinance, 2001. The Taxation Officer assessed that the income from other sources, notably interest income, did not qualify for exemption as it was not directly attributable to the running of the project. The Taxation Officer's decision was contested by the taxpayer, leading to an appeal at the First Appellate Authority. The authority ruled that the matter was too controversial for rectification under Section 221 and should instead be addressed under Section 122. The Appellate Tribunal upheld this view, highlighting that prior rulings by the Supreme Court had clarified the taxability of such income, thus necessitating a review of the Taxation Officer's decision. This case underscores the importance of judicial precedent in tax law and the need for careful interpretation of tax exemptions. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
Not available
|
| Judges |
Shahid, Judicial Member,
Jamil Khan, Judicial Member,
Abdul Rauf, Accountant Member
|
| Lawyers |
Sajjad Tasleem Azam, D.R. for Appellant,
Dr. Ikram ul Haq for Respondent,
Mansoor Baig for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
2010 SLD 67,
(2010) 102 TAX 70,
2010 PTD 1121
|
| Other Citations |
CIT v. National Food Laboratories 1992 SCMR 687,
1992 PTD 570,
2004 PTD (Trib.) 452,
1998 SCMR 908,
1999 PTD 2899,
CIT v. Shadman Mills Ltd. 2008 SCMR 204,
2008 PTD 253,
Generation Pakistan Ltd. and others v. Income Tax Appellate Tribunal of Pakistan and others 2004 SCMR 1319,
A.E.S. Pak., Gen. (Pvt.) Ltd. v. Commissioner Income Tax C.Ps. No.2211 and 2212-1/2005,
Civil Petition No.654, 746 and 747-L/2006, dated 13-12-2006,
1998 PTD 3058
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
39,
122,
221,
Second Schedule,
Cl. 132
|