| Case ID |
e2d38135-9e99-4913-9418-71e99c0c3ae4 |
| Body |
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| Case Number |
I.T.R. No. 35 of 1997 and I.T.A. No.778 of 2000 |
| Decision Date |
Aug 10, 2005 |
| Hearing Date |
|
| Decision |
The Sindh High Court upheld the interpretation of the Income Tax Appellate Tribunal regarding the levy of surcharge under section 10 of the Income Tax Ordinance, 1979. The court concluded that the basis for the surcharge is the total income assessed for the income tax and not merely the tax payable after adjustments. The court emphasized that the provisions of the ordinance must be read together, particularly section 10 and Part-III of the First Schedule, which outlines the applicable rates of surcharge. The interpretation clarified that the surcharge should be computed based on the total income for the assessment year, not on the adjusted tax payable. Consequently, the court affirmed the Tribunal's decision, recognizing the legal framework governing the imposition of surcharges. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, 1979, particularly concerning the levy of surcharge under section 10. The Sindh High Court examined the application of surcharge on the total income as assessed for the assessment years in question. The core argument was whether the surcharge should be based on the income tax and super tax payable or the amount assessed. The court determined that the Income Tax Appellate Tribunal had correctly interpreted the law, asserting that the surcharge is calculated on the total income assessed and not merely on the tax payable after adjustments. This judgment not only clarifies the legal implications of the Income Tax Ordinance but also sets a precedent for similar cases. The decision emphasizes the importance of adhering to statutory provisions while calculating tax liabilities, ensuring that the principles of taxation are applied uniformly and justly. |
| Court |
Sindh High Court
|
| Entities Involved |
Dawood Corporation (PVT.) LTD,
Dawood Cotton Mills Ltd
|
| Judges |
MUHAMMAD MUJEEBULLAH SIDDIQUI, JUSTICE,
KHILJI ARIF HUSSAIN, JUSTICE
|
| Lawyers |
Muhammad Farid,
Jawaid Farooqi
|
| Petitioners |
Dawood Corporation (PVT.) LTD
|
| Respondents |
COMMISSIONER OF Income Tax APPEALII, KARACHI
|
| Citations |
2006 SLD 255,
2006 PTD 148,
(2006) 93 TAX 281
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
10,
85,
136,
FirstSched.
|