Law: Income Tax Ordinance, 1979

Section: 12,12(18)

(a) Income Tax Ordinance (XXXI of 1979) [since repealed[--- ----S. 12(18)---Deemed income of assessee---Scope---Payment received in advance by assessee for the sale and supply of goods---Whether such advance payment was deemed to be income of assessee and thus taxable---Held, that the words loan and advance were used synonymously---Though it was possible to also consider the immediate payment of price for the sale of goods (for deferred delivery of the same) to be an advance, however, the word advance as used in S. 12(18) of the Income Tax Ordinance, 1979 (the 1979 Ordinance), did not include such payment of price---Furthermore amounts in question were in any case the gross receipts of each assessee for the supply/sale of goods (i.e., were brought to revenue account in the ordinary course of business) and were taxed accordingly---To bring such amounts also within the ambit of the S. 12(18) of the 1979 Ordinance and hold the assesses liable to tax for that reason as well would, in the facts and circumstances of the present cases, be tantamount to an impermissible double taxation---Section 12(18) of the 1979 Ordinance had no application to the present cases---Petitions for leave to appeal were dismissed and leave was refused. (b) Interpretation of statutes--- ----Fiscal/taxing statute---Charging provision, interpretation of---Scope---Charing provisions of a fiscal/taxing statute were to be construed strictly, and if two reasonable interpretations were possible the one in favour of the assessee was to be adopted. ORDER MUNIB AKHTAR, JUSTICE:---.--- At the conclusion of the hearing it was announced that these two petitions were being dismissed. The following are our reasons for having done so. 2. These matters arise under the Income Tax Ordinance, 1979 (1979 Ordinance). Although the respondent-assessees are different in the two cases, the point in issue is the same. Indeed, in C.P.L.A. 2281-L/2017, where the departments Tax Reference was dismissed by the learned High Court on 29.05.2017, it was expressly noted that the same was being done on account of the judgment (dated 11.04.2017) in the other matter before us, i.e., C.P.L.A. 1591-L/2017. (The last mentioned was…

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