| Case ID |
429d1a62-94c7-43c9-ae98-0c6e9b0dd57a |
| Body |
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| Case Number |
PTR No. 112 of 2011 |
| Decision Date |
Mar 16, 2022 |
| Hearing Date |
Mar 16, 2022 |
| Decision |
The Lahore High Court ruled that Clause (5) of Part-III of the Second Schedule to the Income Tax Ordinance, 2001, which was enacted through SRO No. 171(I)/2008, is remedial and curative in nature and has retrospective operation. The Court found that the exclusion of the purchase price of electricity from the turnover liable to minimum tax was valid until the year 2013. It was determined that the Appellate Tribunal did not commit any illegality in its decision and that the retrospective application of the clause was justified to reduce the tax liability for corporatized entities, including the taxpayer. The Court affirmed the Appellate Tribunal's interpretation and upheld its decision regarding the amendments made to the assessments. |
| Summary |
The case pertains to the interpretation of the Income Tax Ordinance, 2001, specifically regarding the applicability of minimum tax provisions to corporatized entities in the energy sector. The Lahore High Court examined the legality of Section 53 and related clauses that exclude certain costs from the turnover when calculating minimum tax obligations. The decision emphasized the remedial nature of the law, ensuring that corporatized entities are not unduly burdened by tax liabilities that could hinder their operations. The key issue was whether the clause had retrospective effect, which the Court confirmed, thereby allowing for tax relief for the years preceding the enactment of the law. This case is significant for entities in the energy sector and highlights the importance of legislative clarity in tax matters. |
| Court |
Lahore High Court
|
| Entities Involved |
Gujranwala Electric Power Company (GEPCO)
|
| Judges |
MUHAMMAD SAJID MEHMOOD SETHI, JUSTICE,
ASIM HAFEEZ, JUSTICE
|
| Lawyers |
Mian Yousaf Umar, Advocate for the Applicant department,
Mr. Shahbaz Butt and Ahsan Mahmud, Advocates for the Respondent taxpayer
|
| Petitioners |
THE COMMISSIONER INLAND REVENUE, Zone-I, GUJRANWALA
|
| Respondents |
M/S GUJRANWALA ELECTRIC POWER, COMPANY (GEPCO)
|
| Citations |
2022 SLD 925,
(2022) 126 TAX 16
|
| Other Citations |
Messrs Army Welfare Sugar Mills Ltd. and others. v. Federation of Pakistan and others (1992 SCMR 1652),
Commissioner of Income Tax. v. Shahnawaz Ltd. and others (1993 SCMR 73),
Anoud Power Generation Limited and others. v. Federation of Pakistan and others (PLD 2001 SC 340)
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
53(1)(2),
53(1)(c),
113,
122(5A),
133(5)-Clause(1A),
Part-IV of Second Schedule-Clause(5),
Part-III of Second Schedule
|