| Case ID |
e2016005-e103-49ff-aa0b-ced451e87e3a |
| Body |
View case body. Login to View |
| Case Number |
|
| Decision Date |
Nov 19, 1984 |
| Hearing Date |
Oct 31, 1984 |
| Decision |
The Income Tax Appellate Tribunal ruled that the arbitration fees received by the appellant, Ghulam Murtaza Khan, cannot be considered as income of a casual and non-recurring nature. The appellant had received arbitration fees amounting to Rs.30,000 each in the first two years and Rs.10,000 and Rs.30,000 in the subsequent years. The Tribunal agreed with the assessing officer's view that these receipts were not casual, as they were foreseen and resulted from the appellant's professional expertise as an advocate. The appeal was dismissed, confirming the earlier orders of the Appellate Assistant Commissioner. |
| Summary |
This case revolves around the taxability of arbitration fees received by Ghulam Murtaza Khan, an advocate. The Income Tax Appellate Tribunal examined the nature of the receipts and the qualifications of the appellant. The Tribunal determined that the arbitration fees were received as a result of the appellant's professional skills and expertise, thus falling outside the definition of casual and non-recurring income as per the Income Tax Act. The Tribunal's decision was influenced by precedents that clarified the meaning of casual income. The case highlights the interpretation of tax laws in relation to professional services and the criteria for classifying income types, which is crucial for legal practitioners and tax professionals. Keywords: taxation, arbitration fees, legal expertise, income tax law, tax appeal. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
GHULAM MURTAZA KHAN,
FARHAT ALI KHAN
|
| Lawyers |
F...A...F. C.A.
|
| Petitioners |
Ghulam Murtaza Khan
|
| Respondents |
Not available
|
| Citations |
1985 SLD 222,
1985 PTD 267
|
| Other Citations |
(1950) 18 I T R 825,
(1968) 67 I T R 616,
P L D 1981 S C 85,
I I T C 419,
(1979) 29 Taxation 129
|
| Laws Involved |
Income Tax Act, 1922,
Income Tax Ordinance, 1979
|
| Sections |
23(3),
4(3)(vii),
63
|