Law: Income Tax Ordinance, 1979

Section: 2(11),22,27(2),74

(a) Income Tax Ordinance (XXXI of 1979)---Ss. 2(11), 22 & 27(2)---Sale of commercial plot by assessee purchased for investment purposes---Gain from sale of plot considered by Revenue to be adventure in nature of trade as business income assessable under S.22 of Income Tax Ordinance, 1979---Validity---Revenue had not brought on record any material to show that at the time of purchase of plot, intention of assessee was to achieve revenue gains---Such intention must be deduced from facts and circumstances of each case---Mere change of investment would not amount to adventure in nature of trade---In determining nature of transaction, regard had to be made to nature of property, length of its ownership and holding, actual conduct of assessee in respect thereof and other factors including absence of evidence of any trading activity of speculative nature---If disputed transaction was considered to be revenue gain, then provisions of S.2(11) of Income Tax Ordinance, 1979 read with S.22 thereof would be attracted---Gain on sale of immovable property, if considered to be in nature of capital gain, same would be outside purview of S.27 of Income Tax Ordinance, 1979, as for purposes of capital gain, immovable property was excluded from definition of "capital gain" under S.27(2) thereof---Disputed transaction was not in nature of adventure in trade. (1966) 62 ITR 578; AIR 1959 SC 1252; Commissioner of Income Tax v. Habib Bank Limited (1985 SCMR 284; British Tax Encyclopaedia, Volume 5, (pages 1013-1014) and Californian Copper Syndicate v. Harris (1903-1911) 5 T.C. 159 rel. (b) Income Tax Ordinance (XXXI of 1979)--- ----S. 74---Liability of legal representatives of deceased assessee---Scope---Such representatives, if brought on record within reasonable time frame, would be liable to pay tax imposed on deceased assessee---Recourse to S.74 of Income Tax Ordinance, 1979 in such case would be condition precedent. JUDGMENT ARSHAD SIRAJ, J.---This application has been filed under section133(1) of the Income Tax Ordinance, 1979, hereinafter referred to as "the Ordinance", in which the, Commissioner of Income Tax, the applicant, has referred the followings question allegedly…

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