| Citation(s) |
|---|
| 1981 SLG 559 1981 SLD 559 1981 SCMR 1029 |
Supreme Court of Pakistan
Civil Appeal No. 32!P to 34/P of 1972, decision dated: 16-03-1981.(On appeal from the judgment and order dated 4-10-1971 of the Peshawar High Court, Peshawar, in Reference Applications Nos. 62, 63 and 64 of 1971)
DORAB PATEL, NASIM HASAN SHAH AND FAKHRUDDIN G. EBRAHIM, JJ
Amiraada Khan, Advocate-on-Record for Appellant. Zahoorul Haq, Advocate Supreme Court and S. Safdar Hussain, Advocate-on-Record for
Respondents.
Civil Appeal No. 32!P to 34/P of 1972, decision dated: 16-03-1981.(On appeal from the judgment and order dated 4-10-1971 of the Peshawar High Court, Peshawar, in Reference Applications Nos. 62, 63 and 64 of 1971)
DORAB PATEL, NASIM HASAN SHAH AND FAKHRUDDIN G. EBRAHIM, JJ
Amiraada Khan, Advocate-on-Record for Appellant. Zahoorul Haq, Advocate Supreme Court and S. Safdar Hussain, Advocate-on-Record for
Respondents.
THE COMMISSIONER OF IncomE tax-
VS
MESSRS M. BAHAR AHMAD & SONS-
Law:
Section:
(a) Income-tag Act (XI of 1922)---S. 10 (2) (iii), (xvi)-Special leave to appeal-Granted to consider contention that cl. (iii) of S. 10 (2), being a special provision dealing with payment of interest, excludes application of S. 10 (2) (xvi), a provision of general nature and that if allowance on account of interest not admissible under cl. (iii), same not admissible at all.-[Leave to appeal] (b) Income-tax Act (XI of 1922)- -- S. 10 (2) (iii), (xvi)-Admissible deduction -Scope of cis. (iii) & (xvi)-Interpretation of statutes-Maxim: Generalia specialibus non derogant (things special derogate from things general)-Rule applies only if scope between special and general clauses same-[Interpretation of statutes-Maxim]. Commissioner of Income-tax v. Engineers Ltd. P L D 1967 S C 524 ref. (c) Income-tax Act (XI of 1922)- S. 10 (2) (iii), (xvi)-Admissible deduction-Interest on capital followed-Assessee sifting amounts of money to wife and three minor grandsons and crediting same to accounts of donees from year to year in firm's accounts books-Facts proving a loan transaction between donees and assessee-Interest paid by assessee on such amounts-Held, appropriately deductable under cl. (iii) although expenditure incurred can also be said to fall under cl. (xvi) of S. 10 (2). Commissioners of Income-tax v. Englneers Ltd. P L D 1967 S C 524 ref. Bombay Steam Navigation Company v. Commissioner of Income-tax 1965 P T D 6 24 and Commissioner of Income-tax v. Attock Oil Company Ltd. P L D 1975 Lah. 1181 cited. JUDGMENT FAKHRUDDIN G. EBRAHIM, J.--This judgment will dispose of Civil Appeal Nos. 32-P, 33-P and 34-P of 1972 in which the common question of law raised is whether the interest paid t?y ih,:: respondent assessees on the amounts in question which they had re:eived from minor relations, when held not to be admissible for exemption under section 10 (2) (iii) of the Income-tax Act could properly fall within the scope of section 10 (2) (xvi) of the same Act. Respondent-assessee firm consisting of three partners, namely, H. Babar Ahmad his son Iqbal Ahmad and the grandson Shaukat Usman was at the relevant time assessed to income-tax. In proceedings for assessment of…
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