| Case ID |
36f0bbd5-3be8-45d5-8e03-abd255cb0c2f |
| Body |
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| Case Number |
I.T.A. No. 618(IB) of 1986-87 |
| Decision Date |
Dec 30, 1987 |
| Hearing Date |
|
| Decision |
The appeal was dismissed as the appellant's building did not meet the criteria for exemption under clauses 70 and 71 of the Income Tax Ordinance, 1979. The court found that the expression 'any unit of building' refers to 'any one unit of the building' and not 'any number of units of the building'. The building in question was a three-storeyed structure with shops on the ground floor and flats on the upper floors. Since the ground floor was not used for residential purposes, the building could not be classified as a multistoreyed building comprising flats or apartments. Therefore, the conditions for tax exemption were not satisfied, leading to the rejection of the appeal. |
| Summary |
In the case of I.T.A. No. 618(IB) of 1986-87, the Income Tax Appellate Tribunal addressed the interpretation of the Income Tax Ordinance, particularly regarding tax exemptions for units within a building. The case involved an individual who sought exemption for rental income derived from a property that did not qualify under the specified conditions of the law. The tribunal clarified that the term 'any unit of building' refers to a single unit and not multiple units owned by the same individual. This case emphasizes the importance of understanding tax law provisions and their specific requirements for exemptions. The decision is crucial for property owners and tax professionals, as it delineates the boundaries of tax relief under the Income Tax Ordinance, 1979. For individuals involved in real estate, particularly in multistoreyed buildings, it is essential to comprehend the eligibility criteria for tax exemptions to avoid disallowance of claims, as seen in this case. The ruling also highlights the significance of legal representation in tax matters, reinforcing the need for expert advice when navigating complex tax regulations. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan, Chairman
|
| Lawyers |
Khalid Majid, C.A. for Appellant,
Maqbool Hussain Shah, D.R. for Respondent
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1988 SLD 30,
1988 PTD 213,
(1988) 57 TAX 169
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
Sched. II, Part I, 70,
Sched. II, Part I, 71
|