| Case ID |
3b2faee8-a324-4167-93a1-39fb6a732ed9 |
| Body |
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| Case Number |
P.T.R. No. 200 of 2013 |
| Decision Date |
Nov 09, 2021 |
| Hearing Date |
Nov 09, 2021 |
| Decision |
The Lahore High Court ruled on the applicability of the proviso added to Section 153(6) of the Income Tax Ordinance, 2001. The court found that the insertion of the third proviso was unnecessary as it did not repeal the first proviso, which exclusively dealt with companies. The ruling clarified that tax deducted on transactions under Section 153(1)(b) would be classified under the Normal Tax Regime (NTR) rather than the Final Tax Regime (FTR). The court emphasized the importance of harmonious interpretation of conflicting provisions, concluding that both the first and third provisos could coexist without redundancy. The reference applications were disposed of in accordance with the articulated legal principles. |
| Summary |
This case revolves around the interpretation of tax provisions under the Income Tax Ordinance, 2001, specifically concerning the classification of tax deductions under various sections. The Lahore High Court's decision clarified the scope and applicability of the first and third provisos to Section 153(6), ruling that they could coexist. The court highlighted the necessity of a harmonious reading of the law to prevent redundancy. This case is significant for taxpayers and legal practitioners as it sets a precedent for understanding minimum tax obligations and the implications of tax deductions in corporate and non-corporate contexts. Key issues addressed included the nature of tax deductions and their classification under the NTR and FTR, which are critical for compliance with tax regulations. The ruling impacts how tax liabilities are determined and clarifies the legislative intent behind the Income Tax Ordinance, making it a pivotal reference for future tax-related cases. |
| Court |
Lahore High Court
|
| Entities Involved |
COMMISSIONER INLAND REVENUE, ZONEVII, REGIONAL TAX OFFICEII, LAHORE,
MESSRS TECHLOGIX PAKISTAN (PVT.) LTD.
|
| Judges |
SHAHID JAMIL KHAN,
ASIM HAFEEZ
|
| Lawyers |
Imran Rasool for Applicant.,
Sarfaraz Ahmad Cheema,
Liaquat Ali Chaudhry,
M. Shahid Usman,
M. Naeem Munawar,
Raja Sikandar Khan,
Saba Saeed,
Salman Zaheer Khan for applicant(s) department in connected reference applications.,
Shahbaz Butt,
Khurram Shahbaz Butt,
Muhammad Ahsan,
M. Usman Zia,
Asad Abbas Raza for taxpayer.,
Zohaib Ali Sindhu,
Javed Akhtar,
Asad Hussain,
Azeem Ullah Virk,
Ch. Qamar Zaman,
Zahid Atiq,
Malik Nadir Ali Sherazi,
Muhammad Nouman Shams Qazi,
Ch. Zeshan Afzaal Hashmi for taxpayers in the connected applications.
|
| Petitioners |
COMMISSIONER INLAND REVENUE, ZONEVII, REGIONAL TAX OFFICEII, LAHORE
|
| Respondents |
MESSRS TECHLOGIX PAKISTAN (PVT.) LTD.
|
| Citations |
2022 SLD 895,
2022 PTD 893
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
113(3)(b),
133(1),
153(1)(b),
153(6)
|