Law: Income Tax Ordinance, 1979

Section: 23(1)(xviii),24(a),136(1)

Law: Finance Act, 1991

Section: 12

Income Tax Ordinance (XXXI of 1979)-----Ss. 23(1)(xviii), 24(a) & 136(1)---Finance Act (XII of 1991), S. 12---Business expenditure---Corporate assets tax---Authorities were aggrieved of order passed by Income Tax Appellate Tribunal directing for allowance for corporate assets tax as expenses allowable under S.23 of Income Tax Ordinance, 1979---Validity---Any expenditure incurred for the purposes of business which was neither capital nor personal was an allowable expenditure under S. 23(1)(xviii) of Income Tax Ordinance, 1979---Only bar which could be imposed was whether such expenditure was incurred in ordinary course of business or not and on the ground of commercial expediency and had a direct nexus and relation with the business or not---While making assessment of a company corporate assets tax had to be given the same treatment as that of wealth tax since it was a direct levy on the assets held by a company---Such was an allowable expenditure and the same was rightly allowed by appellate authority as well as Income Tax Appellate Tribunal---Provisions of S. 24(a) of Income Tax Ordinance, 1979, were not applicable as corporate assets tax was not a tax on the profits and the gains of a company rather it was a direct charge or levy upon the assets held by a company as specified in S. 12 of Finance Act, 1991---High Court answered the question in affirmative against the authorities and in favour of assessee---Reference was dismissed in circumstances. I.C.C. Textile Ltd. and others v. Federation of Pakistan and others 2001 PTD 1557; Rowlatt J, in IR v. Anglo Brewing Co. Ltd. 12 Tax Case 803; CIT v. Malayalam Plantations Ltd. 53 ITR 140 (SC); Commissioner of Income Tax v. Rajaram Bandekar (1994) 208 ITR 503; International Power Global Developments Ltd. v. Commissioner Income Tax 2009 PTD 50; Commissioner of Income Tax, East Pakistan DACCA v. Engineers Ltd. DACCA (1967) 16 Tax 81; Commissioner of Income Tax, Entral Zone 'B' Karachi v. Zakia Siddiqui 1989 PTD 135; Commissioner of Income Tax, Central Zone 'A' Karachi v. S.M. Naseem Allahwala [(1991) 64 Tax 31] and Commissioner of Income Tax Central Zone 'C' Karachi v. M. Hussain Ahmed 1992 PTD 30 ref. JUDGMENT…

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