| Case ID |
399a1da9-d766-40a0-a106-e992f101065e |
| Body |
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| Case Number |
I.T.As. Nos. 607 and 608 of 2000 |
| Decision Date |
Feb 23, 2010 |
| Hearing Date |
|
| Decision |
The Sindh High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT), which had previously dismissed appeals filed by the department against the deletion of additions made under section 24(e) concerning Head Office Expenses claimed by the respondent, Messrs Grindlays Bank PLC. The court noted that the provisions of the Tax Treaty override the provisions of the Income Tax Ordinance, 1979, and the ITAT had correctly concluded that the respondent's claims for expenses were justified. The court answered the questions raised in the appeals affirmatively in favor of the respondent, indicating that the ITAT had appropriately assessed the evidence and the law applicable to the case, particularly the treaty provisions which govern the taxation of non-resident entities. |
| Summary |
In the case of I.T.As. Nos. 607 and 608 of 2000, the Sindh High Court addressed significant issues regarding the taxation of non-resident banking companies in Pakistan, specifically concerning the deductibility of Head Office Expenses under the Income Tax Ordinance, 1979 and the Income Tax Rules, 1982. The court analyzed the interplay between domestic tax laws and international tax treaties, emphasizing the overriding effect of such treaties on local legislation. The judges, GULZAR AHMAD and IRFAN SAADAT KHAN, examined the arguments presented by both the petitioners and respondents, ultimately ruling in favor of the bank. This case highlights critical aspects of tax law, particularly in relation to non-resident entities and the complexities of international taxation, making it a pivotal reference for practitioners and scholars in the field of tax law. The decision reinforces the importance of the Tax Treaty provisions in determining tax liabilities and deductions for non-resident entities, ensuring compliance with both local and international tax standards. |
| Court |
Sindh High Court
|
| Entities Involved |
COMMISSIONER OF INCOME TAX, KARACHI,
Messrs GRINDLAYS BANK PLC, KARACHI
|
| Judges |
GULZAR AHMAD,
IRFAN SAADAT KHAN
|
| Lawyers |
Mr. Javed Farooqui,
Mr. Iqbal Salman Pasha
|
| Petitioners |
COMMISSIONER OF INCOME TAX, KARACHI
|
| Respondents |
Messrs GRINDLAYS BANK PLC, KARACHI
|
| Citations |
2010 SLD 2313,
(2010) 102 TAX 178,
2010 PTD 2012
|
| Other Citations |
2009 PTD 1791,
American Express Bank Limited Karachi v. Commissioner of Income Tax Karachi,
I.T.C. Nos. 71, 75 and 76 of 1992,
I.T.A. No. 534 of 1999
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Rules, 1982
|
| Sections |
24(e),
24C,
163,
20
|