| Case ID |
f9667877-031a-43d2-bc61-fe4b8d0508e4 |
| Body |
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| Case Number |
Petitions Nos. 170, 181 and 182 of 1967 |
| Decision Date |
Jan 22, 1969 |
| Hearing Date |
|
| Decision |
The Dacca High Court ruled that the levy of additional tax under Section 45A of the Income Tax Act, 1922, was not valid due to lack of legal authority. The court determined that the additional tax imposed was neither a penalty nor interest on tax due, and stated that the language of the statute was clear, indicating that tax could only be levied in relation to total income. The court set aside the orders of the Income-tax Officer that imposed additional tax, concluding that the provisions of Section 45A could not be applied retrospectively to the assessment year 1960-61. The court's decision emphasized the importance of adhering to the clear provisions of the law, which do not allow for additional taxes to be levied without proper statutory backing. |
| Summary |
This case revolves around the legality of additional tax imposed under Section 45A of the Income Tax Act, 1922, by the Income-tax Officer on Zeenat Textile Mills for the assessment years 1960-61, 1963-64, and 1964-65. The petitioner challenged the additional tax, arguing it was imposed without legal authority and was not applicable retrospectively. The High Court heard arguments regarding the interpretation of tax laws, particularly focusing on the provisions of the Income Tax Act that govern the levying of taxes. The court's ruling clarified that additional tax cannot be levied on computed tax due without clear statutory provisions supporting such action. This case highlights the critical nature of statutory interpretation in tax law and the need for clear legislative authority when imposing additional financial burdens on taxpayers. |
| Court |
Dacca High Court
|
| Entities Involved |
Not available
|
| Judges |
B.A. SIDDIKY C.J.,
ABDULLAH, JABIR, J
|
| Lawyers |
Syed Ishtiaq Ahmad,
Samad Meah,
Afzalul Haque
|
| Petitioners |
ZEENAT TEXTILE MILLS (EAST PAKISTAN) LIMITED
|
| Respondents |
ANOTHER,
COMMISSIONER OF Income tax, DACCA ZONE
|
| Citations |
1969 SLD 739,
(1969) 20 TAX 44,
1969 PTD 405,
1969 PLD 673
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
18A,
45A,
33A,
23B,
3,
55,
29,
31,
33,
30,
46,
2(14),
23B(5)
|