| Citation(s) |
|---|
| 1981 SLG 3135 = 1981 SLD 3135 = 1981 PLD 293 |
Supreme Court of Pakistan
Civil Appeals Nos. K-46 of 1971 and K-69 to K-71 of 1972, heard on 3rd September, 1980. (On appeal from the judgment of the High Court of Sind & Baluchistan, Karachi, dated 9-2-1971-and 2-6-1977 in I. T. C. Nos. 5, 19, 16 and 18/71), respectively)..
Presented By: Anwarul Hag, C, J., Shafi-ur-Rehman and Fakhruddin G. Ebrahim, JJ
Haji Azlz Abdul Shakoor Brothers v. Commissioner of Income-tax 411 T R 550; Minister for Finance v. Smith (1927) A C 193 ; Mann v. Nash (1929-1932) 16 I R T C 523; The Law and Practice of Income-tax by Kanga & Palkhiwala, 7th Edn., Vol. I, p. 464,ref. Mansoor Ahmad Khan, Advocate Supreme Court and Mrs. Bashida-Patel, Advocate-on-Record for Appellant. . , Nasim Ahmad Khan, Advocate Supreme Court and I! A. Kidwal, Advocate?on-Record for
Respondents.
Civil Appeals Nos. K-46 of 1971 and K-69 to K-71 of 1972, heard on 3rd September, 1980. (On appeal from the judgment of the High Court of Sind & Baluchistan, Karachi, dated 9-2-1971-and 2-6-1977 in I. T. C. Nos. 5, 19, 16 and 18/71), respectively)..
Presented By: Anwarul Hag, C, J., Shafi-ur-Rehman and Fakhruddin G. Ebrahim, JJ
Haji Azlz Abdul Shakoor Brothers v. Commissioner of Income-tax 411 T R 550; Minister for Finance v. Smith (1927) A C 193 ; Mann v. Nash (1929-1932) 16 I R T C 523; The Law and Practice of Income-tax by Kanga & Palkhiwala, 7th Edn., Vol. I, p. 464,ref. Mansoor Ahmad Khan, Advocate Supreme Court and Mrs. Bashida-Patel, Advocate-on-Record for Appellant. . , Nasim Ahmad Khan, Advocate Supreme Court and I! A. Kidwal, Advocate?on-Record for
Respondents.
COMMISSIONER OF INCOME-TAX, CENTRAL, KARACHI--Appellant
VERSUS
MEssRs ALPHA INSURANCE Co. LTD. AND ANOTHER-Respondents
Law: Income Tax Rules, 1922
Section: 2,6
Law: Insurance Act (IV of 1938)
Section: 40-C
(a) Income-tax Act (XI of 1922) Sched. Firsf-- Insurance business - Computation of profits and gains-..Rules contained in First Schedule---Completely, exhaustively, and to exclusion of every other provision not expressly incorporated, govern computation of profits and gains of insurance business. (b) Income-tax Act (XI of 1922) Sched. First., rr. 2 & 6 read with Insurance Act (IV of 1938), S. 40-C and Insurance Rules, r. 40-Excess management expenses?Disallowance of-Power of Assessing Authority under r. 6 of First Schedule to Income tax Act. 1922-Held, does not, like r. 2 of such Schedule, or on strength of S. 40-C of Insurance Act, 1938 or r. 40 of Insurance Rules, extend to disallowance of excess management expenses. (1967) 15 Taxation (Tribunal) 1 and Commissioner of Income-tax, Central, Karachi v. Mercantile Fire & General Insurance Company of Pakistan Ltd. Civil Reference No. 31 of 1966 ref. (c) Income-tax Act (XI of 1912) Sched. First. r. 6 & S. 10-Re-adjustment of balance of profits. ?Power of Assessing Authority under first part of r. 6 of First Schedule to readjust balance of profits disclosed by annual accounts furnished under Insurance Act, 1938-Held, restricted to exclude from it any expenditure other than expenditure which may under provisions of S. 10 be allowed for computing profits and gains of business-Assessing Authority, held further, required to apply an independent mind uncon?trolled by Insurance Act to arrive at such a re-adjustment-Insurance Act (IV of 1938). Life Insurance Corporation of India v. Commissioner of Income-tax (1965) 511 T R 773 ref. (d) Income tax Act (XI of 1922) Read with Insurance Act (IV of 1938), S. 40-C and Insurance Rules, r. 40-Expenses of management-Deduction as business expenses. ?Expenses of management incurred in excess of limit prescribed under S. 40-C of Insurance Act, 1938 and r. 40 of Insurance Rules-Held; Not in nature of penalty, fine, or forfeiture for purpose of their admissibility for deduction as business expenses under S. 10 of Income-tax Act, 1922. Dates of hearing: 2nd and 3rd September, 1980. …