Law: Income Tax Act, 1922

Section: 10(2)

Law: Constitution of Pakistan, 1973

Section: 185(3)

(a) Income-tax Act (XI of 1922)--   ---S.10(2)--Constitution of Pakistan (1973), Art. 185(3)--Leave to appeal ,granted to assessee, an Airline, to consider: firstly, whether payments received by the assessee for the sale of its tickets became its income only when the tickets were utilized, and secondly, in the event of the tickets not being utilized the character of the moneys received could be regarded as income merely by its transfer from the Unearned Transportation Account to the Profit and Loss Appropriation Account   (b) Income-tax Act (XI of 1922)--   ---S. 10(2-A) [unamended]--Amount representing unclaimed balance consisting of the value of unutilized tickets of an Airline assessee which was transferred to the Profit and Loss Appropriation Account cannot be regarded as income within meaning of S.10(2-A) [unamended] and tickets when sold were not trading receipts--Character and the nature of trading receipt was to be determined at the time of receipt itself.   Punjab Steel Scrap Merchants Association Ltd. v. Commissioner of Income-tax, Punjab (1961) 43 I T R 164; Lakshmanier and Sons v. Commissioner of Income-tax (1953) 23 I T R 202; Ratanchand Lallumal: In re (1936) 4 I T R 198; Morley (H.M. Inspector of Taxes) v. Messrs Tattersall (1935-1939) 22 Tax Cases 51; Commissioner of Income-tax v. E.V. Miller P L D 1959 S C 219; Hotel Metropole Ltd. v. Commissioner of Income-tax 1973 P T D 371; Punjab Distilling Industries v. Commissioner of Income-tax (1959) 35 1 T R 519; 43 ITR 164; Kohinqor Mills Co. Ltd. v. Commissioner of Income-tax, Bombay City (1963) 49 I T R 578 and Bombay Dyeing and Manufacturing Co. Ltd. v. State of Bombay (1958) S C R 1122 ref. JUDGMENT MUHAMMAD HALEEM, C.J.--This appeal, by leave, arises from the judgment of the High Court of Sind, Karachi, dated 13-10-1977 by which the question namely, whether in the facts and circumstances of the case, the Tribunal was right in holding that the sum of Rs.6,95,171 representing unclaimed balance consisting of the value of unutilised tickets was taxable income of the applicant, referred to by the Income-tax Appellate Tribunal, Karachi, for decision was answered in the affirmative…

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