| Case ID |
ea052445-9d59-47ce-8aa6-aaf0bb9ecfbc |
| Body |
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| Case Number |
I.T.A. No. 1613/IB of 2005 |
| Decision Date |
Dec 19, 2006 |
| Hearing Date |
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| Decision |
The appeal was decided in favor of the assessee, stating that the property purchased by the assessee in the auction of Citi Bank is entitled to exemption under clause 6(H) of the 2nd Schedule of the Income Tax Ordinance, 1979. The court emphasized that the management and control requirement applies specifically to DFIs and not banking companies. Therefore, properties purchased from banking companies, regardless of their ownership structure, are exempt from the application of section 13 when the purchase is made through a court order or decree. |
| Summary |
This case revolves around the interpretation of the Income Tax Ordinance, 1979, specifically regarding exemptions related to property purchases made through banking institutions. The Appellate Tribunal Inland Revenue reviewed the appeal where the department contested the exemption claimed by the assessee for a property purchased from Citi Bank. The central issue was whether Citi Bank, being a financial institution not controlled by the government, could disqualify the exemption under section 13 of the ordinance. The court clarified that the exemption applies as long as the purchase was made through a court order, emphasizing the distinction between banking companies and DFIs concerning governmental control. This decision sets a significant precedent for future cases regarding tax exemptions for properties bought from banking institutions, highlighting the need for clarity in the law regarding the definition of a banking company versus a DFI. The keywords trending in the legal field such as 'Income Tax Exemption', 'Banking Institutions', and 'Legal Precedents' are highly relevant to this case, making it an important reference for tax law practitioners. |
| Court |
Appellate Tribunal Inland Revenue
|
| Entities Involved |
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| Judges |
KHAWAJA FAROOQ SAEED, CHAIRMAN,
LIAQUAT ALI KHAN, ACCOUNTANT MEMBER
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| Lawyers |
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| Petitioners |
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| Respondents |
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| Citations |
2010 SLD 2299,
(2010) 101 TAX 214,
2010 PTD 1685
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| Other Citations |
Not available
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| Laws Involved |
Income Tax Ordinance, 1979
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| Sections |
13
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