| Case ID |
edbdb4ef-bfc2-419b-be03-b334ba17d1d9 |
| Body |
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| Case Number |
I.T.R. No. 61061 of 2022 |
| Decision Date |
Oct 20, 2022 |
| Hearing Date |
Oct 20, 2022 |
| Decision |
The Lahore High Court ruled that the taxpayer's appeal was allowed, annulling the previous orders for charging income tax under Section 111 of the Income Tax Ordinance, 2001, based on the payment of provincial agriculture income tax. The court emphasized that agricultural income is governed by provincial law and cannot be taxed under the federal Income Tax Ordinance. The court also clarified that penalties for late payment of agricultural tax should be imposed under relevant provincial law, and the taxpayer's claims of agricultural income would only be valid if proof of payment of provincial agriculture income tax was provided. The court dismissed the reference application from the income tax department. |
| Summary |
In this landmark case, the Lahore High Court addressed the implications of agricultural income tax under the Income Tax Ordinance, 2001. The case revolved around the taxpayer's obligation to prove payment of provincial agriculture income tax to exempt agricultural income from federal taxation. The court highlighted the importance of adhering to provincial laws governing agricultural income, emphasizing that the federal government lacks the authority to tax agricultural income as per the Constitution. The ruling serves as a significant precedent for future cases involving agricultural income tax, reinforcing the distinction between federal and provincial taxation powers. The decision also underscores the necessity for taxpayers to maintain accurate records and proof of tax payments to defend against claims of unexplained income. This case is crucial for legal practitioners and taxpayers alike, as it clarifies the legal framework surrounding agricultural income taxation, making it essential reading for anyone involved in tax law and agricultural economic activities. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
SHAHID JAMIL KHAN,
MUHAMMAD SAJID MEHMOOD SETHI
|
| Lawyers |
Ch. Muhammad Shakeel
|
| Petitioners |
MESSRS TASNEEM AKHTAR
|
| Respondents |
THE COMMISSIONER INLAND REVENUE, LAHORE
|
| Citations |
2023 SLD 87,
2023 PTD 312,
2023 PTCL 543,
(2022) 126 TAX 579
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Ordinance, 2001
|
| Sections |
111,
122(5A),
133
|