| Case ID |
d450b492-aeb7-435d-998a-ea703606227c |
| Body |
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| Case Number |
I.T.R. No. 465 of 1990 |
| Decision Date |
May 30, 1991 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal referred a question under section 136(1) of the Income Tax Ordinance, 1979 regarding the levying of surcharge on taxes payable. The court considered previous cases and concluded that provision for taxation, as retained income necessary for working capital, is not subject to surcharge. Following this precedent, the question was answered in the affirmative, affirming that the surcharge is not leviable in this context. |
| Summary |
In the case of I.T.R. No. 465 of 1990 before the Sindh High Court, the central legal issue revolved around the interpretation of the Income Tax Ordinance, 1979, particularly section 136 concerning the imposition of surcharges on taxes. The court analyzed the implications of retained income as working capital, referencing previous case law including Commissioner of Income-tax v. Pakistan Tobacco Co. Ltd. and Commissioner of Income-tax v. M/s. Sindh Alkalies (Pvt.) Ltd. The judges ruled that retained income is not liable for surcharge, thus reinforcing the principles of tax law and the application of the Income Tax Ordinance. This case is significant for tax professionals and advocates dealing with similar issues of taxation and retained income, providing a clear precedent for future cases. |
| Court |
Sindh High Court
|
| Entities Involved |
COMMISSIONER OF Income tax,
PAKISTAN OXYGEN LTD
|
| Judges |
NASIR ASLAM ZAHID,
MUHAMMAD HUSSAIN ADIL KHATRI
|
| Lawyers |
Nasrullah Awan for Applicant,
Khalifa Salah-ud-Din for Respondent
|
| Petitioners |
COMMISSIONER OF Income tax
|
| Respondents |
PAKISTAN OXYGEN LTD
|
| Citations |
1991 SLD 158,
1991 PTD 914,
(1992) 65 TAX 138
|
| Other Citations |
Commissioner of Income-tax v. Pakistan Tobacco Co. Ltd. etc. 1988 PTD 66,
Commissioner of Income-tax v. M/s. Sindh Alkalies (Pvt.) Ltd. I.T.C. No. 374 of 1990
|
| Laws Involved |
Income Tax Ordinance, 1979,
Finance Ordinance (XXV of 1980)
|
| Sections |
136,
Sched. I, Part III, para. A
|