Law: Income Tax Ordinance, 2001

Section: 59B,67,177,122(1),122(5A)

Law: Income Tax Rules, 2002

Section: 13

(a) Income Tax Ordinance (XLIX of 2001)----Ss. 59B, 177 & 122(1)---Group relief---Tax year 2007---Applicability of law---Group relief was disallowed by applying the amended law which took effect on 1-7-2007---Taxpayer contended that law which was in force up to 30-6-2007 was applicable since the underlying assessment related to tax year 2007, while the Assessing Officer applied the amended law which took effect on 1-7-2007 and was applicable to tax year 2008 and years thereafter; and under current legal framework a legal provision was applicable to a tax year if it came into force some time during the tax year to which the accounting period related; and tax year 2007 closed on 30-6-2007 and any law coming into force after closure would not be applicable to said tax year---Revenue contended that provisions becoming applicable from 1st July shall be applicable to the returns filed after those provisions coming into effect---Validity---Requirement under the law before the substitution through Finance Act, 2007 and after the substitution were substantially different---Authorities were supposed to first decide as to whether the law before the substitution was applicable or the law as substituted was to be applied---After deciding such basic issue they should have in their respective spheres applied the objective test of meeting one requirement after the other and on the outcome of those tests should have decided that whether the tax payer qualified for the relief under the law or not---No adjudication took place on this issue in the appellate order despite the fact that taxpayer's arguments before First Appellate Authority had been reproduced in the body of the order---Taxation Officer though had dealt at length with the issue on the fulfillment of requirements of S. 59B of the Income Tax Ordinance, 2001 as it stood after the 2007 substitution, but had failed to adjudicate as to which provision of law would be applicable---Law as it stood on 30-6-2007 and not the law that came into force on 1-7-2007 was applicable---Provisions of S. 59B of the Income Tax Ordinance, 2001 would be applicable in the case before amendment through Finance Act, 2007---Question…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492