| Citation(s) |
|---|
| 2025 SLG 5054 2025 SLD 5054 = 2025 LHC 6840 = (2026) 133 TAX 380 |
I.T.R No. 48/2022
ASIM HAFEEZ, J.
Date of hearing: 20.11.2025 Appellant by: Malik Muhammad Shahzad Awan, Advocate. Mr. Muhammad Suleman Bhatti, Advocate in ITR No. 29/2024.
Respondent by: Mr. Muhammad Imran Ghazi, Advocate.
Commissioner Inland Revenue Multan Zone, Regional Tax Office, Multan.
VERSUS
Muhammad Kashif.
Law: Income Tax Ordinance, 2001
Section: 39(1), 39(3), 85(5), 111, 122(5), 122(5A), 122(9), 133(8), 39, 89
Summary: The case concerns the tax treatment of gifts received by taxpayers from their parents or spouses. The main issue was whether gifts received outside the banking channel are automatically taxable under Section 39(3) of the Income Tax Ordinance, 2001, or whether taxpayers can substantiate such gifts. The Court held that gifts between prescribed relatives (as per clause (la) of Section 39(1) and Section 85(5)) can be claimed but are still subject to factual verification by the tax authorities. The Appellate Tribunal’s orders were set aside, and the matter was remanded for proper fact-based inquiry into the genuineness of the gifts.
Sections Used: Section 39(1), Section 39(3), Section 85(5), Section 111, Section 122(5), Section 122(5A), Section 122(9), Section 133(8) of the Income Tax Ordinance, 2001.