| Case ID |
edb25302-b44f-412e-81b8-f8fcab97d4b4 |
| Body |
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| Case Number |
Writ Petition No. 420 of 2014 |
| Decision Date |
Oct 10, 2023 |
| Hearing Date |
Oct 10, 2023 |
| Decision |
The Lahore High Court ruled in favor of the petitioner, Messrs Nordex Singapore Equipment Limited, stating that the income derived from the offshore supply of goods is not taxable in Pakistan under the Avoidance of Double Taxation Treaty between Pakistan and Singapore. The court found that the Federal Board of Revenue failed to meet its statutory obligations and did not provide a fair hearing to the petitioner. The impugned order was set aside, and the matter was remitted to the Commissioner Inland Revenue for a fresh decision, ensuring proper hearing and consideration of the relevant laws, including the Income Tax Ordinance. |
| Summary |
In the case of Messrs Nordex Singapore Equipment Limited vs. Federal Board of Revenue, the Lahore High Court addressed crucial issues related to taxation for offshore companies under the Income Tax Ordinance, 2001. The petitioner, an offshore company, argued against the tax deductions imposed by the Federal Board of Revenue, citing the Avoidance of Double Taxation Treaty (ADTT) between Pakistan and Singapore as a basis for their exemption. The court emphasized the importance of adhering to statutory obligations and ensuring a fair hearing for all parties involved. The decision highlighted the interconnected nature of the relevant sections of the Income Tax Ordinance, ultimately leading to the court's ruling that the impugned order was invalid and should be reconsidered with due process. This case serves as a significant reference point for offshore companies engaged in international trade and tax regulations, particularly in the context of Pakistan's legal framework. |
| Court |
Lahore High Court, Rawalpindi Bench
|
| Entities Involved |
Federal Board of Revenue,
Nordex Singapore Equipment Limited,
FFC Energy Ltd.
|
| Judges |
Jawad Hassan
|
| Lawyers |
Shehbaz Butt,
Dr. Farhat Zafar,
Shaikh Anwar-ul-Haq,
Barrister Raja Jibran Tariq Ali,
Arshad Mahmood Malik
|
| Petitioners |
Messrs Nordex Singapore Equipment Limited
|
| Respondents |
Federal Board of Revenue,
CIR,
FFC Energy Ltd.
|
| Citations |
2024 SLD 221,
2024 PTD 208
|
| Other Citations |
Mollah Ejahar Ali v. Government of East Pakistan and others PLD 1970 SC 173,
Town Committee, Piplan v. Muhammad Hanif and others 2008 SCMR 723,
Government of Pakistan through Director-General, Ministry of Interior, Islamabad and others v. Farheen Rashid 2011 SCMR 1,
Messrs United Woollen Mills Ltd. Workers' Union v. Messrs United Woollen Mills Ltd. 2010 SCMR 1475,
Altaf Ibrahim Qureshi and another v. A AM Log Ittehad and others PLD 2019 SC 745,
Chenab Flour and General Mills v. Federation of Pakistan and others PLD 2021 Lah. 343,
The Murree Brewery Co. Ltd. v. Pakistan through the Secretary to Government of Pakistan Works Division PLD 1972 SC 279,
Sargodha Textile Mills Limited through General Manager v. Habib Bank Limited through Manager and another 2007 SCMR 1240,
M.C.R (Pvt.) Ltd. Franchisee of Pizza Hut v. Multan Development Authority and others 2021 CLD 639,
Mian Asghar Ali v. Government of Punjab through Secretary (Colonies) BOR, Lahore and others 2017 SCMR 118,
Shaheen Merchant v. Federation of Pakistan/National Tariff Commission and others 2021 PTD 2126,
Shell Pakistan Limited v. Punjab through The Secretary Ministry of Finance and others 2020 PTD 1607
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
2(41),
122A,
122B,
152,
153,
206
|