| Case ID |
3225b8d5-c4d8-4af7-aa0f-7c0dd9c2ef67 |
| Body |
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| Case Number |
I.T.C. No. 134 of 1994 |
| Decision Date |
Sep 20, 2006 |
| Hearing Date |
|
| Decision |
The Sindh High Court ruled in favor of the respondent, TARIQ MOHSIN SIDDIQUI, determining that the salaries of a director should be assessed under section 16 of the Income Tax Ordinance, 1979, rather than section 30. The court emphasized that the term 'employee' as defined in the Income Tax Ordinance is broader than that in the Income Tax Rules, and the definitions serve different purposes. The court found that the Income Tax Appellate Tribunal had correctly interpreted the law, allowing for the inclusion of salaries from multiple companies under the same assessment criteria, thus affirming the Tribunal's decision. |
| Summary |
This case revolves around the interpretation of the term 'employee' in the context of the Income Tax Ordinance, 1979. The Sindh High Court examined the definitions provided in both the Ordinance and the Income Tax Rules, highlighting the broader scope of the term as used in the Ordinance. The decision clarified that directors receiving remuneration from multiple companies should have their salaries assessed under section 16, emphasizing the importance of consistent application of tax laws. The ruling serves as a significant precedent for future cases concerning income tax assessments for directors, clarifying the legal definitions and ensuring fair treatment under the law. This case is pivotal for taxpayers and legal professionals alike, as it underscores the critical relationship between statutory definitions and their practical application in tax assessments. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
MUHAMMAD MUJEEBULLAH SIDDIQUI,
FASIAL ARAB
|
| Lawyers |
Nasrullah Awan,
Sardar M. Ejaz Khan
|
| Petitioners |
COMMISSIONER OF INCOME TAX, COMPANIES-II, KARACHI
|
| Respondents |
TARIQ MOHSIN SIDDIQUI
|
| Citations |
2007 SLD 5,
2007 PTD 290,
(2007) 95 TAX 275
|
| Other Citations |
Commissioner of Income Tax v. S. Mazhar Hussain 1988, PTD 563
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Rules, 1982
|
| Sections |
16,
16(2),
16(2)(a),
16(2)(e),
30,
136,
136(2),
3,
(2)(c)
|