| Citation(s) |
|---|
| 2024 SLG 216 2024 SLD 216 2024 PTCL 119 2024 PTD 662 129 TAX 693 2024 SCMR 741 2024 SCP 26 |
Supreme Court of Pakistan
C.P. 560-K/2019 to C.P. 589-K/2019, decided on 12th January,2024. (Against the consolidated judgment of High Court ofSindh at Karachi dated 31.05.2019, passed in ITRAs No. 22 of2014[1], etc.).
PRESENT: MR. JUSTICE SYED MANSOOR ALI SHAH, MR. JUSTICE JAMAL KHAN MANDOKHAIL AND MR. JUSTICE ATHAR MINALLAH.
Petitioner by Dr. Shahnawaz, ASC. Mr. Abdul Wahid, Addl. Commissioner, FBR.
Respondents by Mr. Khalid Javed Khan, ASC (Through V.L Karachi Registry)
C.P. 560-K/2019 to C.P. 589-K/2019, decided on 12th January,2024. (Against the consolidated judgment of High Court ofSindh at Karachi dated 31.05.2019, passed in ITRAs No. 22 of2014[1], etc.).
PRESENT: MR. JUSTICE SYED MANSOOR ALI SHAH, MR. JUSTICE JAMAL KHAN MANDOKHAIL AND MR. JUSTICE ATHAR MINALLAH.
Petitioner by Dr. Shahnawaz, ASC. Mr. Abdul Wahid, Addl. Commissioner, FBR.
Respondents by Mr. Khalid Javed Khan, ASC (Through V.L Karachi Registry)
COMMISSIONER INLAND REVENUE ZONE-IV, KARACHI. (IN ALL CASES) VSM/S. A.P. MOLLER MAERSK.M/S. SAFMARINE CONTAINER LINE.
Law: Income Tax Ordinance, 2001
Section: 7 & 107
CONVENTION BETWEEN THE ISLAMIC REPUBLIC OF PAKISTAN AND THE KINGDOM OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME. [NOTIFICATION NO. S.R.O. 187(I)/84, DATED THE 28TH FEBRUARY, 1984]CONVENTION BETWEEN THE ISLAMIC REPUBLIC OF PAKISTAN AND THE REPUBLIC OF MALTA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.[NOTIFICATION NO. S.R.O. 57(I)/76, DATED THE 20TH DECEMBER, 1976]Sections 7 & 107---Income arising from container detention charges (�CDC�), container service charges (�CSC�) and terminal handling charges (�THC�) falls within the category of �profits from the operation of ships in international traffic� in the context of double taxation conventions concluded between Pakistan and Denmark, as well as between Pakistan and Belgium.---The question before us is whether income arising from container detention charges (�CDC�), container service charges (�CSC�) and terminal handling charges (�THC�) falls within the category of �profits from the operation of ships in international traffic� in the context of double taxation conventions concluded between Pakistan and Denmark, as well as between Pakistan and Belgium.The High Court, in its decision given in Income Tax References filed by the respondents, concluded that profits arising from CDC, CSC, and THC fell within the scope of the term �profits from the operation of ships in international traffic� as stipulated in Article 8 of the two Conventions. Consequently, such profits were deemed eligible for the benefit of favourable taxation. The Department is now seeking leave to appeal the High Court�s determination, challenging the inclusion of CDC, CSC, and THC under the umbrella of �profits from the operation of ships in international traffic� and their eligibility for beneficial taxation envisaged in Article 8 of the two Conventions.The respondents, being tax residents of Denmark and Belgium, are entitled to the benefits and concessions under the Pakistan- Denmark Convention and the Pakistan-Belgium Convention, as the case may be, in line with the…
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