| Case ID |
ec820364-0c7e-4104-af11-cccac548f81f |
| Body |
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| Case Number |
Income-tax Cases Nos.12 and 13 of 1990 |
| Decision Date |
May 22, 1990 |
| Hearing Date |
May 22, 1990 |
| Decision |
The court addressed the question of whether the tax liability or tax payable is considered a requirement of working capital and should be excluded from the total income for the purpose of levying surcharge. The judges noted that both counsels agreed that the question had already been answered affirmatively in the precedent case of Commissioner of Income-Tax v. M/s. Pakistan Tobacco Company Limited, reported in 1988 PTD 66. Consequently, the court disposed of the reference in accordance with the reported decision, confirming the initial ruling. |
| Summary |
In the case of Income-tax Cases Nos.12 and 13 of 1990, the Sindh High Court examined a significant issue concerning tax liabilities under the Income Tax Ordinance, 1979. The case revolved around whether tax liability constitutes a necessary element of working capital that should be excluded from total income when calculating surcharges. The court referenced a previous ruling which established that tax liability is indeed a working capital requirement. This judgment reinforces the principles of tax law, particularly how tax liabilities are treated in financial statements. The outcome of this case is vital for taxpayers and tax practitioners, as it clarifies the treatment of tax liabilities in financial assessments. The decision highlighted the importance of precedent in legal determinations and provided clarity on the exclusion of tax liabilities from taxable income for surcharge purposes, ensuring that businesses understand their financial obligations accurately. This ruling can significantly influence future tax assessments and the interpretation of working capital in the context of tax law. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
SAJJAD ALI SHAH C.J.,
WAJIHUDDIN AHMED, J
|
| Lawyers |
Ch. Muhammad Iqbal for Applicant,
Syed Irtiza Hussain Zaidi for Respondent
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
Messrs JAMES FINLAY
|
| Citations |
1992 SLD 55,
1992 PTD 338
|
| Other Citations |
1988 PTD 66
|
| Laws Involved |
Income Tax Ordinance, 1979
|
| Sections |
136
|