| Case ID |
44200ee0-ee3d-48bd-ab13-287fdfaf8f23 |
| Body |
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| Case Number |
I.T.R. No. 23 of 1995 |
| Decision Date |
Dec 24, 1998 |
| Hearing Date |
Aug 12, 1998 |
| Decision |
The Sindh High Court delivered a decision on I.T.R. No. 23 of 1995 dated December 24, 1998, setting aside the order of the Appellate Tribunal and directing the Income Tax Officer to frame the assessment under Section 21 of the Income Tax Ordinance, 1979. The court held that the shares of the co-owners were definite and ascertainable, and thus they should be assessed individually rather than as an Association of Persons. This ruling reversed the previous assessments and emphasized the proper interpretation of Sections 19 and 21 in the ordinance. The court's decision was based on the definitions of 'definite' and 'ascertainable' as per legal dictionaries and it cited relevant precedents to support the conclusion that equal shares should be assessed independently for tax purposes. |
| Summary |
In the pivotal case of I.T.R. No. 23 of 1995, adjudicated by the Sindh High Court on December 24, 1998, the judiciary addressed critical issues concerning the Income Tax Ordinance, 1979, particularly Sections 19, 21, and 136. The core of the dispute revolved around the interpretation of 'definite' and 'ascertainable' shares among co-owners of a property and the consequent tax implications. Petitioners, represented by Muhammad Farid, challenged the assessment made by the Commissioner of Income Tax Zone VI Karachi, upheld by Shaikh Hyder, arguing that equal ownership shares should fall under Section 21 instead of being taxed as an Association of Persons under Section 19. The Sindh High Court meticulously analyzed the definitions and applications of these sections, referencing landmark cases like Nizam-ud-Din Amir-ud-Din of Lahore and Abdul Azeez & Brothers v. Commissioner of Income-tax, Kerala. The court concluded that 'definite' and 'ascertainable' shares do not necessitate physical partition but rather definitive ownership proportions, thereby mandating individual tax assessments for co-owners. This decision underscores the importance of precise legal interpretations in tax law and reinforces the individual accountability of property co-owners in tax liabilities. Key terms such as 'Income Tax Ordinance', 'tax assessment', 'co-ownership', 'Section 21 interpretation', and 'Sindh High Court ruling' enhance the case's visibility and relevance in contemporary legal and tax-related discussions, making it a significant reference for understanding property taxation and co-owner responsibilities. |
| Court |
Sindh High Court
|
| Entities Involved |
M/S. Qasim Ali and Others,
Commissioner of Income Tax Zone VI Karachi
|
| Judges |
Saiyed Saeed Ashhad,
Justice S. Ahmed Sarwana
|
| Lawyers |
Muhammad Farid,
Shaikh Hyder
|
| Petitioners |
M/S. Qasim Ali and Others
|
| Respondents |
Commissioner of Income Tax Zone VI Karachi
|
| Citations |
2000 SLD 65,
2000 PTD 1288,
(2000) 81 TAX 458
|
| Other Citations |
Nizam-ud-Din Amir-ud-Din of Lahore (1943) II ITR 443,
Abdul Azeez Brothers v. Commissioner of Income-tax, Kerala (1961) 4 Taxation 155
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
21,
19,
136
|