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1984 PTD 200

THE COMMISSIONER OF INCOME- TAX (CEN t RAL), KARACHI vs MESSRS

Citation1984 PTD 200
CourtSindh High Court
Judge(s)Saleem Akhter, Z.C. Valiani
ResultReference answered accordingly

1. Z. C. VALIANI, J. - The applicant has filed the above reference on account of a legal question arising from the decision of the Income-tax Appellate Tribunal (Karachi Bench), Karachi, dated 21st February, 1972, which is as follows: - "Whether on the facts and in the circumstances of the case the Income---Tax Appellate Tribunal' was right in directing the deletion of the additions of Its. 6,000 and Rs. 6,275 made by the Income- tax Act in respect of outstanding liabilities for more than three year."

2. However, the learned Advocates for the (?) outset drew our attention to D. B. Decision of this Court reported in 1980 PTD 314 and submitted, that this question has been decided by the said D. B.

3. Judgment and consequently as the income-tax assessment year 1957-58 is involved, which was prior to the amendment of section 10(2-A) of the Income-tax Act, 1922 by Finance Act, 1966 the D. B.

4. Decision of this Court will govern this reference fully.

5. We have gone through the D. B. Decision of this Court reported in 1980 PTD 314 on the point raised in the above-mentioned question referred for answer. We find ourself in respectful agreement with the said decision of D. B. Of this Court, for the reasons given in the said judgment as mere fact, that the liability has become time-barred on account of law of limitation, will not ipso facto lead to the conclusion, that the amount becomes a profit in the bands of the assessee.

6. Therefore, we answer the above question in the affirmative for the reasons given in the above- mentioned D. B. Decision of this Court, with which we are in full agreement.

7. This reference is answered accordingly.

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