Act/Law wise: Judgment of Supreme Court of Pakistan
Income Tax Ordinance, 1979 (Pakistan) |
Section/Order/Article/Rule/Regulation |
Head Note |
Section 23
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The expense in dispute while computing business income–
The expense in dispute neither falls under Section 23(xviii) of the 1979
Ordinance nor any other category of allowances or deductibles listed in
rest of the provisions of Section 23, so as to justify its deduction while
computing respondent’s income. The High Court of Sindh allowed its
adjustment simply on the ground that sports and social activities boost
mental and physical health of a person by answering the question of law in
the affirmative. This may be so but that ipso facto cannot be regarded as a
type of allowance that can be directly co-related to any category of
allowances and deductibles listed in Section 23 of the 1979 Ordinance with
the business activity of the respondent, which is rendering of operational
and maintenance services to a power generating company. The conclusion of
the High Court being totally misconceived and not based on any provision of
Section 23 is not sustainable in law. The expenditure in question,
therefore, cannot be taken into consideration while computing business
income of the respondent. .....Commissioner of Income Tax =VS=
International Power Global Developments Limited, (Civil), 2018 (1) [4 LM
(SC) 128] ....View Full Judgment
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Section 176
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Amended assessment–
SNGPL and OGRA are bodies that are competent to divulge such information
with absolute correctness as one is the supplier of natural gas and the
other fixes the retail price of CNG in the country. To the information so
procured, which on the face of it fall within the ambit of ‘definite
information’, the tax authorities applied OGRA’s conversion formula to
ascertain the quantum of CNG produced from the natural gas consumed in each
of the tax years in question. It then transpired that the sale of CNG has
been under-reported, which led to issuance of amended assessment order. We
find no legal infirmity in the manner in which the tax authorities
ascertained the quantum of CNG produced from the volume of natural gas
consumed in the process of conversion. Allow these appeals, set-aside the
impugned judgment passed in all connected cases and restore the amended
assessment orders issued to the respondents. .....Commissioner Inland
Revenue =VS= M/s Khan CNG Filling Station, (Civil), 2017 (2)– [3 LM (SC)
86] ....View Full Judgment
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Clause 170 [2nd Schedule (Part I)]
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The interest income on the investment made in the National Funds Bonds was
exempt from tax under Clause 170 to the Second Schedule to the Part I of
the Income Tax Ordinance. The appellant’s counsel failed to point out
that there was any restriction under the law that would have disentitled
the respondent from claiming exemption on the interest income in case there
were loans standing against it. .....Commissioner of Income Tax =VS= Pak
Saudi Fertilizer Ltd, (Civil), 2018 (2) [5 LM (SC) 187] ....View Full Judgment
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