| Case ID |
ee04afe0-9190-46a5-9a92-4b877bd72727 |
| Body |
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| Case Number |
Civil Appeals Nos. 1084 to 1098 of 2008, 1481 to 1 |
| Decision Date |
Apr 05, 2016 |
| Hearing Date |
Jan 26, 2016 |
| Decision |
The Supreme Court of Pakistan ruled on various interpretations of tax laws under the Income Tax Ordinance, 1979 and 2001, specifically addressing the minimum tax liabilities under Sections 80D and 113. The court clarified that the minimum tax is based on declared turnover from all sources, including receipts under the Presumptive Tax Regime. The court emphasized the need for strict interpretation of fiscal laws, ensuring that definitions provided within the statutes are adhered to without extending their meaning beyond what is explicitly stated. The court also distinguished between 'supply' and 'sale', ruling that on-the-spot cash purchases do not qualify as 'supply of goods' under the relevant sections of the ordinance, thus exempting them from tax withholding provisions. |
| Summary |
This case involves a significant interpretation of the Income Tax Ordinance, focusing on minimum tax liabilities and the definitions of turnover, supply, and sale. The Supreme Court of Pakistan addressed whether the minimum tax under Section 80D of the Income Tax Ordinance, 1979 is applicable to aggregate declared turnover, including receipts under the Presumptive Tax Regime. The court underscored the importance of adhering to the explicit definitions within the law, thereby providing clarity on the application of these tax provisions. The ruling delineated between sales made to consumers and contractual supplies, noting the implications this distinction has for tax liabilities. This decision is crucial for tax practitioners and entities involved in commercial transactions as it impacts the understanding of tax obligations under current legislation. The keywords include 'Income Tax Ordinance', 'minimum tax liability', 'turnover', 'Presumptive Tax Regime', and 'tax law interpretation', which are essential for legal professionals and entities navigating tax-related matters. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Not available
|
| Judges |
MIAN SAQIB NISAR,
JUSTICE IQBAL HAMEEDUR RAHMAN,
JUSTICE TARIQ PARVEZ
|
| Lawyers |
Not available
|
| Petitioners |
Sarfraz Ahmed Cheema
|
| Respondents |
Salman Akram Raja
|
| Citations |
2016 SLD 2912,
2016 PLD 545
|
| Other Citations |
PLD 1984 SC 92,
PLD 1991 SC 596,
2009 PTD 1707,
2015 PTD 884,
2008 PTD 1401,
2002 PTD 1
|
| Laws Involved |
Income Tax Ordinance, 1979,
Income Tax Ordinance, 2001
|
| Sections |
50(4)(a),
80C(2)(a)(i),
80D,
113
|