| Case ID |
e312ab21-d3c3-40ca-891b-1d72a8567a63 |
| Body |
View case body. Login to View |
| Case Number |
P.T.R. No. 177 of 2001 |
| Decision Date |
Feb 25, 2002 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the reference in limine, stating that the questions posed did not raise any substantive question of law or controversy. The court observed that the amounts added to the income of the firm as per the provisions of section 12(18) were actually capital contributions from the partners, which did not constitute a loan. The court emphasized that the issue of whether an amount introduced as capital was actually a loan was a question of fact, not law. Therefore, the addition of Rs. 3,60,000 to the firm's income was unjustified as the amount was never claimed as a loan. The reference was dismissed without further deliberation. |
| Summary |
In the case of P.T.R. No. 177 of 2001, the Lahore High Court addressed an appeal regarding the treatment of cash deposits in the accounts of a partnership firm. The Commissioner of Income Tax contended that certain amounts recorded as capital contributions should be considered as loans under the Income Tax Ordinance, specifically section 12(18). The Tribunal had previously ruled in favor of the firm, indicating that these amounts did not attract the provisions of the cited section. The High Court concurred with the Tribunal's view, stating that the determination of whether an amount was a loan or a capital contribution is fundamentally a question of fact. This case highlights the importance of accurately categorizing financial contributions within partnership accounts and the implications of such classifications under tax law. Key phrases include 'Income Tax Ordinance', 'capital contributions', 'loan classification', and 'Lahore High Court decision'. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
Naseem Sikandar,
Muhammad Sair Ali
|
| Lawyers |
Mian Yousaf Umar
|
| Petitioners |
COMMISSIONER OF Income Tax/Wealth Tax, Faisalabad
|
| Respondents |
Messrs Mohsin & Co, Rice Dealer, Lahore Road, Chiniot
|
| Citations |
2002 SLD 306,
2002 PTD 1858
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
12,
12(18),
136(1)
|