| Case ID |
389457f6-d3e1-49fa-b4e0-c2531f7065c1 |
| Body |
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| Case Number |
Civil Appeals No. 640 to 643 of 2006, Civil Petiti |
| Decision Date |
Oct 26, 2010 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeals and petition, stating that the exemption from withholding tax on profits from National Saving Schemes was legally justified. The court confirmed that the National Saving Schemes enjoyed tax exemptions for investments made before June 30, 2001, and that such exemptions could not be revoked by a subordinate legislative instrument. The judgment emphasized the importance of the historical context of tax exemptions and the continuity of such benefits under the Income Tax Ordinance, 1979, and the Income Tax Ordinance, 2001. The court found no merit in the arguments presented by the appellants, concluding that the High Court's decision to grant exemptions was correct. |
| Summary |
In the landmark case involving the Commissioner of Income Tax, Lahore versus Messrs Prosperity Weaving Mills (PVT.) LTD., the Supreme Court of Pakistan addressed critical issues surrounding tax exemptions related to National Saving Schemes. The case revolved around the legality of withholding tax deductions from profits paid to investors in these schemes. The court examined provisions from the Income Tax Ordinance of 1979 and 2001, ultimately ruling in favor of the petitioners, affirming that exemptions were in place for investments made before June 30, 2001. The judgment highlighted the significance of these exemptions and the inability of subordinate legislative actions to negate them. This case is crucial for understanding tax laws in Pakistan, particularly those affecting savings and investment schemes, and sets a precedent for future cases involving tax exemptions. It underscores the importance of historical legislative context in interpreting current laws, making it essential reading for tax practitioners and advocates in the field. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
National Savings Organization
|
| Judges |
NASIR-UL-MULK,
JAWWAD S. KHAWAJA,
MIAN SAQIB NISAR
|
| Lawyers |
Muhammad Ilyas Khan,
Raja Abdul Ghafoor,
Saghir Ahsan Farooqui,
Siraj Khalid,
Dr. Ikram-ul-Haq
|
| Petitioners |
Messrs PROSPERITY WEAVING MILLS (PVT.) LTD.
|
| Respondents |
COMMISSIONER OF INCOME TAX, LAHORE
|
| Citations |
2011 SLD 98,
2011 SCMR 177
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Ordinance, 2001
|
| Sections |
Second Sched.Part-I,
77C,
77C(A),
239(14)
|