| Case ID |
ffdbd58c-4f8b-4c5a-9b4e-2941a2962fd2 |
| Body |
View case body. Login to View |
| Case Number |
Reference Case No. 11 of 1959 |
| Decision Date |
Aug 27, 1959 |
| Hearing Date |
|
| Decision |
The court held that section 11 of the Business Profits Tax Act, 1947, is controlled by section 14 of the Act, which prescribes a four-year limitation period for assessing business profits that have escaped assessment. The Commissioner of Income Tax's initiation of assessment proceedings on January 16, 1952, was invalid for the accounting periods in question, as the notices were issued beyond the four-year period. The court emphasized that the statute should be read as a whole, and a reasonable interpretation should reconcile various provisions rather than reading sections independently. The appeal was dismissed, and the Commissioner was ordered to pay costs. |
| Summary |
This case, heard in the Dacca High Court, involved the Commissioner of Income Tax, East Pakistan, and Messrs Hoosen Kasam Dada, Karachi, regarding the assessment of business profits tax under the Business Profits Tax Act, 1947. The core issue was whether section 11 of the Act, which does not specify a limitation period, is governed by the four-year limitation in section 14. The court concluded that section 11 is indeed controlled by section 14, as the legislature intended to impose a period of limitation for profits escaping assessment. Initiating assessment proceedings beyond this period was deemed invalid. The court's decision underscored the importance of interpreting statutes as a whole to ensure consistent and reasonable outcomes. This case highlights the significance of statutory interpretation in tax law, emphasizing the necessity for tax authorities to adhere to prescribed limitations. The decision serves as a precedent for similar cases, reinforcing the principle that statutes should not be interpreted in isolation but rather in the context of the entire legislative framework. |
| Court |
Dacca High Court
|
| Entities Involved |
Commissioner of Income Tax, East Pakistan, Dacca,
Messrs Hoosen Kasam Dada, Karachi
|
| Judges |
AMIN AHMED, C. J.,
KHAN, J.
|
| Lawyers |
A. F. M. Mesbah-ud-Din,
A. M. Khan Chowdury,
Asrarul Hossain,
Md. Nurul Huq
|
| Petitioners |
COMMISSIONER OF INCOME TAX, EAST PAKISTAN, DACCA
|
| Respondents |
MESSRS HOOSEN KASAM DADA, KARACHI
|
| Citations |
1960 SLD 57,
1960 PTD 574
|
| Other Citations |
Commissioner of Income tax, Bombay City v. Narsee Nagsee & Co. (1957) 31 ITR 164,
Messrs Bissessar House v. State of Bombay AIR 1959 Bom. 130 (FB),
Commissioner of Income-tax, Bombay v. Pirojbai N. Contractor AIR 1937 Bom. 14
|
| Laws Involved |
Business Profits Tax Act, 1947
|
| Sections |
11,
14
|