Law: Income Tax Act, 1922

Section: 2(6A)

Law: Constitution of Pakistan, 1973

Section: 185(3),227

(a) Income-tax Act (XI of 1922)---S. 2(6-A)---Constitution of Pakistan (1973), Art.185(3)---Leave to appeal was granted for' re-examination of the question dealt with by the High Court as to whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was justified in finding that the return on capital paid by a company to assessee on the holding of the latter in the share capital of the former was not 'dividend' within the meaning of the definition given in S.2(6-A) of the Act. (b) Words and phrases--- ----'Return on capital paid'---Word 'return' is generally understood as profit in the nature of dividend and not in the nature of interest and/or obligatory charge. (c) Income-tax Act (XI of 1922)--- ----S. 2(6-A)---'Dividend'---'Return on capital paid' was guaranteed in the manner provided in the agreement as return to the party raising the capital--Return on capital paid' by the company thus was 'dividend' within the meaning of the term as defined in S.2(6-A) of the Act. (d) Constitution of Pakistan (1973)--¬ ----Art. 227---Interpretation of statutes---So long as the existing statutes were not brought in conformity with Injunctions of Islam, their interpretation, application and enforcement, wherein discretionary judicial elements were involved, only that course would be adopted which was in accord with the Islamic philosophy, its common law and jurisprudence. Haji Nizam Khan's case P L D 1976 Lah. 930; Muhammad Bashir's case PLD 1982 SC 139 and Mian Aziz Shaikh's case P L D 1989 SC 613 ref. (e) Interpretation of statutes¬--- ---- So long as the existing statutes were not brought in conformity with the Injunctions of Islam (Art. 227 of the Constitution of Pakistan (1973)] their interpretation, application and enforcement, wherein discretionary judicial elements were involved, only that course would be adopted which was in accord with the Islamic philosophy, its common law and jurisprudence. Haji Nizam Khan's case PLD 1976 Lah. 930; Muhammad Bashir's case 4 PLD 1982 SC 139 and Mian Aziz A. Shaikh's case PLD 1989 SC 613 ref. (f) Islamic Jurisprudence--¬ ---- Contract---Prohibition against third party intervention in mutual…

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