| Case ID |
43213831-9cc8-4e9c-8219-74d9dfdac93f |
| Body |
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| Case Number |
I.T.As. Nos.57, 58 and 60 of 1998 |
| Decision Date |
Mar 06, 2006 |
| Hearing Date |
|
| Decision |
The Lahore High Court addressed the appeals concerning the disallowance of financial charges claimed by the assessee under the Income Tax Ordinance, 1979. The court noted that the assessee had invested funds in Khas Deposit Certificates (KDCs) and claimed financial charges related to borrowed funds. The court determined that the Income Tax Appellate Tribunal had correctly allowed the financial charges based on precedents from superior courts. The Tribunal's decision was upheld as the financial charges were deemed admissible under section 23(1)(vii) of the Income Tax Ordinance. Consequently, the appeal was disposed of without requiring further answers to the raised questions, as the principles of law regarding the admissibility of financial charges had already been established. |
| Summary |
In the case of I.T.As. Nos.57, 58, and 60 of 1998, the Lahore High Court deliberated on the financial charges claimed by the assessee under the Income Tax Ordinance, 1979. The key issue revolved around whether the financial charges were justifiably disallowed by the Income Tax Officer. The case involved Messrs Ali Chicks Poultry Breeding Farm, which contended the legitimacy of its claims based on its own funds and borrowed amounts. The court's ruling emphasized the importance of adhering to established legal precedents, ensuring that financial charges are acknowledged under the appropriate sections of the Income Tax Ordinance. The decision not only clarified the admissibility of such charges but also reinforced the principle that sufficient funds can influence the eligibility for financial deductions. This case is pivotal for tax practitioners and businesses navigating the complexities of tax liabilities and deductions in Pakistan. |
| Court |
Lahore High Court
|
| Entities Involved |
COMMISSIONER OF INCOME TAX,
ALI CHICKS POULTRY BREEDINGS FARM
|
| Judges |
MIAN HAMID FAROOQ,
SYED HAMID ALI SHAH
|
| Lawyers |
Muhammad Ilyas Khan
|
| Petitioners |
COMMISSIONER OF INCOME TAX/WEALTH TAX, LAHORE ZONEB, LAHORE
|
| Respondents |
Messrs ALI CHICKS POULTRY BREEDINGS FARM, LAHORE
|
| Citations |
2006 SLD 234,
2006 PTD 2678,
(2007) 95 TAX 120,
2007 PTCL 310,
2007 PTR 183
|
| Other Citations |
1986 SCMR 968,
(1992) PTD (Trib.) 1141,
1992 PTD 954 (S.C. Pak),
1991 PTD (Trib.) 531,
1995 PTD (Trib.) 677,
I.T.As. Nos. 6162 and 6163/LB of 1985-86, dated 12-2-1992
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
23(1)(vii)
|