Law: Income Tax Ordinance, 1979

Section: 163,80AA

Income Tax Ordinance (XXXI of 1979)---Ss.163 & 80-AA---Agreement for Avoidance of Double Taxation between Pakistan and France, Arts. III, cl.(1) & sub-para. 4---Exemption---Assessee, a non-resident company was a consultant who derived, income from providing special services to Civil Aviation Authority for construction of Air Port in Pakistan ---Assessee was specialist in the particular field and possessed required professional skill, personnel and technical resources as part of their normal business activity---Exemption was claimed in respect of receipts under Art. III of the Agreement for Avoidance of Double Taxation between Pakistan and France as commercial profit---Claim was rejected by the Assessing Officer---Validity---Technical services provided by the assessee clearly fell within the ambit of professional services which had expressly been excluded from the definition of the term "Industrial and commercial profits" as used in the Convention---Fee for technical services did not come within the ambit of "industrial and commercial profits" and therefore, was not exempt---Receipts, thus, were liable to income-tax in Pakistan. 1985 PTD (Trib.) 877 approved. I.T.A. No.3750/LB of 1986-87; CIT v. General Tyres Limited 1989 PTD 664 and Glaxo Group Ltd. v. CIT, General Zone-B, Karachi 1992 PTD 636 distinguished, I.T.A. No.2014/KB of 1986-87; I.T.A. No.885/KB of 1988-89; CIT v. Abbot Finance Co. Ltd. 1991 PTD 915; 1993 PTD (Trib.) 739; 1988 PTD (Trib.) 1022; Raleigh Investment Co. Ltd. v. CIT, Karachi East, Karachi 1983 PTD 126 and Civil Appeals Nos.76-K of 1991 and 26-K of 1992 ref. ORDER SYED NADEEM SAQLAIN (JUDICIAL MEMBER).---The present appeal for the assessment year 1987-88 at the instance of the assessee has been preferred against the order, dated 23-9-1988 passed by the learned CIT(A) Zone 1, Karachi. 2. For the adjudication of titled appeal, this Full Bench has been constituted to resolve the difference of opinion expressed by a Division Bench at Karachi in a reported judgment cited as 1985 PTD (Trib.) 877 and unreported judgment of the Lahore Bench in I. T. A. No. 3750/LB of 1986-87, dated 4-2-1991. 3. The assessee company in the first case namely…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492