| Citation(s) |
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| 2025 SLG 1375 2025 SLD 1375 = 2025 SCP 182 = 2025 PTCL 664 = 2025 PTD 1230 = (2025) 132 TAX 383 |
CIVIL APPEAL NO. 743 OF 2014 AND CIVIL PETITION NO.IO-L OF 2017, CIVIL MISCELLANEOUS APPLICATION NO.13838 OF 2021 IN CIVIL PETITION NO.IO-L OF 2017, CIVIL APPEALS NO. 1954 OF 2019 AND 404 OF 2020, CIVIL PETITIONS NO.3688-L OF 2019, 3689-L OF 2019, 746-L OF 2021 AND 3503 OF 2022
JUSTICE YAHYA AFRIDI, CJ JUSTICE MUHAMMAD SHAFI SIDDIQUI JUSTICE MIANGUL HASSAN AURANGZEB
Mr. Muhammad Makhdoom Ali Khan, Sr. ASC assisted by Mr. Saad Mumtaz Hashmi, ASC, Mr. Tariq Aziz, AOR, Syed Rifaqat Hussain Shah, AOR and Sh. Mehmood Ahmad, AOR in C.A.s No.743 of 2014, 1954 of 2019 & 404 of 2020. Mr. Muhammad Yahya, ASC (via video link (Lahore)) in C.P.L.A.s No.lO-L of 2017 85 3689-L of 2019 Mr. Ibrar Ahmed, ASC (via video link (Lahore)) in C.P.L.A.s No.3688-L of 2019 &746-Lof2021. For the
Respondents: Mr. Munawar Ali Memon, ASC and Mrs. Abida Parveen Channar, AOR (via video link (Karachi)) in C.A. No.743 of 2014. Dr. Ikram ul Haq, ASC (via video link (Lahore)) in C.M.A. No. 13838 of 2021. Mr. Ibrar Ahmed, ASC (via video link (Lahore)) in C.P.L.A.s No.3688-L of 2019 &746-Lof2021. Dr. Farhat Zafar, ASC in C.A. No. 1954 of 2019.
M/s. Kassim Textile Mills (Pvt.) Limited
VS
. Commissioner Inland Revenue, Karachi
Law: Income Tax Ordinance, 2001
Section: 113(1),113(2)(c), 120, 122(5A)
Summary of Judgment and Core Points
This Supreme Court judgment addresses several consolidated appeals and petitions involving the interpretation and application of Section 113(2)(c) of the Income Tax Ordinance, 2001, specifically regarding the carry forward and adjustment of minimum tax paid by companies that have incurred losses.
Core Points
Background:
Multiple cases were consolidated because they raised a common legal question: Can companies that paid minimum tax under Section 113(1) during loss years carry forward and adjust this tax against future tax liabilities, even when their tax liability in those loss years was zero due to assessed losses1?
Section 113 of the Income Tax Ordinance, 2001: