Legal Case Summary

Case Details
Case ID e2d38135-9e99-4913-9418-71e99c0c3ae4
Body View case body.
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.