COMMISSIONER OF INCOME TAX, ZONE "A" KARACHI vs Messrs COMBINED INVESTMENT (PVT.) LTD. and 5 others
This matter comes before the Supreme Court of Pakistan by way of appeals filed by the Commissioner of Income Tax, Zone 'A', Karachi against the respondents, including Messrs Combined Investment (Pvt.) Ltd. The core legal question concerned the assessment and charging of income tax on deeming interest under the Repealed Income Tax Act, 1922. Upon submissions made by the learned counsel for the appellants that the tax was charged with effect from 1st July, 1976 pursuant to Explanation-8 to section 4(1) of the Repealed Income Tax Act, 1922, and with the consent of the respondents' counsel who had no objection thereto, the court disposed of the appeals in terms of the statement made by the appellant's counsel. The court held that the tax would be charged from the respondent with effect from 1st July, 1976 on the interest of the loan, laying down the principle that tax matters may be resolved on agreed terms consistent with statutory provisions.
- Whether income tax on deeming interest can be charged with effect from 1st July, 1976 under the Repealed Income Tax Act, 1922?
- Can tax appeals be disposed of in terms of statements made by counsel when opposing parties have no objection?
- Section 4(1), Repealed Income Tax Act 1922
ORDER
' IFTIKHAR MUHAMMAD CHAUDHRY, C.J.---Learned counsel appearing for the appellants contended that the Department had not charged income tax on the deeming interest retrospectively but with effect from 1st July, 1976 as it has been provided in the Explanation-8 to section 4(1) of the Repealed Income Tax Act, 1922, therefore, instead of dilating upon other points of the case, the appeals may be disposed of with the observation that the tax will be charged by the Department from the respondent with effect from 1st July, 1976 on the interest of loan.
2. Mr. Iqbal Salman Pasha, learned counsel appearing for respondent in Civil Appeals Nos. 1443 and 1446 of 1996 had no objection if the appeals are disposed of in these terms. Order accordingly, the appeals are disposed of in view of the statement so made by the learned counsel for the appellants. No order as to costs.