P L D 1993 Supreme Court 257 (PLP)

Civil Appeal No.326‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. JAMIA INDUSTRIES LTD.‑‑Respondent (On appeal from the judgment dated 20‑4‑1988 of the Sindh High Court, Karachi in I.T.R. No. 55 of 1987). Civil Appeal No.526‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus MARITIME TRADING CORPORATION‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in,I.T.R. No. 30 of 1983). Civil Appeal No.527‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. PASHTANY FARWARDING CO. LTD., KARACHI‑‑Respondent (On appeal from the judgment dated 20‑4‑1988 of the Sindh High Court, Karachi in i.T.R. No. 168 of 1987). Civil Appeal No.528‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appeflant versus M/s. BEECHAM (PAKISTAN) LTD.‑‑Respondent (On appeal from the judgment dated 20‑4‑1988 of the High Court, of Sindh, Karachi in I.T.R. No. 9 of 1987) Civil A1212eal No.529‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. HOECHST PHARMACEUTICAL PAKISTAN LTD.‑‑Respondent (On appeal from the judgment dated 20‑4‑1988 of the High Court, of Sindh, Karachi in I.T.R. No. 26 of 1987). Civil Appeal No.530‑K of 1990 COMMISSIONER OF INCOME TAX Appeflant Versus M/s. CYNAMID (PAKISTAN) LTD. Respondent . (On app;‑al from the judgment dated 20‑4‑1988 of the High Court, of Sindh, Karachi in I.T.R. No.39 of 1987). COMMISSIONER OF INCOME TAX‑‑Appellant Versus CHEMDYES PAKISTAN LTD.‑‑Respondent (On appeal from the judgment dated 13‑10‑1988 of the High Court, of Sindh, Karachi in I.T.R. No.28 of 1988). Civil Appeal No.604‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. CRESCENT CORPORATION LTD.‑‑Respondent (On appeal from the judgment dated 22‑1‑1990 of the Sindh High Court, Karachi in R.A. 14o.63‑KB of 1985). Civil ApRgal No.648‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. PAKISTAN TOBACCO COMPANY‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.48 of 1982). Civil Appeal No.649‑K of I COMMISSIONiR OF INCOME TAX Appellant versus M/s. IDEAL INDUSTRIES LIMITED‑‑Responden (On appeal from the judgment dated 17‑9‑1987 o f the Sindh High Court, Karachi in I.T.R. No.132 of 1984). Civil Appeal No.650‑K of 1990 COMMISSIONER OF q NCOME TAX‑‑Appellant versus M/s. W. WOODWARD (PAK.) LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.1 of 1986). Civil Appeal No.651‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant Versus M/s. FACTO SUGAR MILLS LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.10 of 1985). Civil Appeal No.652‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. HOECHST (PAKISTAN) LIMITED‑‑Respondent (On appeal from the judgment dated 17~9‑1987 of the Sindh High Court, Karachi in I.T.R. N6.78 of 1985). Civil Appeal No.653‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MULLER AND PHIPPS (PAK.) LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.86 of 1985) Civil Appeal No.654‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. BAYER PHARMA LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.2 of 1986). Civil Appeal No.655‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. HYDERI INDUSTRIES LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.7 of 1986). COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. WILLAYAT SONS LIMITED‑‑Respotident (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.12 of 1986). Civil Appeal No.657‑K of 1990 COMMISSIONER OF INCOME TAX‑Appellant versus M/s. GRIND‑WHEEL (PAK.) LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.13 of 1986). Civil A1212eal No.658‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. BAWANY SUGAR MILLS LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.74 of 1982). Civil Appeal No.659‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. SPENCER AND COMPANY (PAK.) LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.26 of 1983). Civil A1212eal No.660‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MUSLIM COMMERCIAL AGENCY LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High ,)urt, Karachi in I.T.R. No.13 of 1985). Civil Appeal No.661‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. MODERN MOTORS LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Kar?ichi in I.T.R. No.16 of 1985). Civil Appeal No.662‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. SHAHTAJ SUGAR MILLS LIMITED‑‑Respondent (on appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.84 of 1985). Civil Appeal No.663‑K of 1990 COMMISSIONER OF INCON4E TAX‑‑Appellant versus M/s. OPAL LABORATOIiIES LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. Nos. 88 of 1985). Civil Appeal No.664‑K of 1 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. FORBES FORBES CAMPBELL AND CO. LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.4 of 1986). Civil Appeal No.665‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. CENTRAL MERCANTILE COMPANY LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.8 of 1986). Civil Appeal No.666‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. LUCAS SERVICES (PAK.) LTD. Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.37 of 1986). Civil A1212eal No.667‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant Versus M/s. SHAHBAZ GARMENTS LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.20 of 1983). Civil Appeal No.668‑K of 1 COMMISSIONER OF INCOME TAX‑‑Appellant Versus M/s. SUPREME ENGINEERING LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.55 of 1983). Civil Appeal No.669‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus CHARTERED BANK LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.47 of 1984). Civil Appeal No.670‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus CHARTERED BANK LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.48 of 1984). Civil Appeal No.671‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellan versus M/s. HUSSAIN EBRAHIM AGENCY LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.143 of 1984). Civil A1212eal No.672‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. GLOBAL TRADERS LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.14 of 1985). Civil Appeal No.673‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. ASBESTOS CEMENT INDUSTRIES'LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.97 of 1985). Civil Appeal No.674‑K of 1990 COMMISSIONER OF INCOME TAX Appellant versus M/s. PAKIMEX LIMITEU‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.14 of 1986). Civil Appeal No.675‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. BURMAH OIL MILLS LTD.‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.C. No.6 of 1984). COMMISSIONER OF INCOME TAX‑‑Appellant ,versus KARACHI CHEMICAL INDUSTRIES LTD.‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh.High Court, Karachi in I.T.C. No.33 of 1984). Civil A1212eal No.677‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus CYNAMID PAKISTAN LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.C. No.105 of 1984). Civil Appeal No.678‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellan1‑ versus .M/s, INDUSTRIAL ENGIN.EERS LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi In ITC, NoA of 1984). Civil Appeal No.779‑K o . f 1990 COMMISSIONER OF INCOME TAX‑‑Appcjlant versus M/s INDUSTRIAL ENGINEERS LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.C. No.5 of 1984). Civil A1212eal No.680‑K of 1 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus METAL INDUSTRIES TD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.5 of 1983). Civil A1212eal No.681‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant .versus M/s. EASTERN ENTERPRISES LTP.‑‑Respondent On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.C. No.72 of 1983). Civil Appeal No.682‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. GERRY'S TRAVEL.AGENCY LTD.‑‑Respondent (On appeal from the judgme ' nt dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.11 of 1986). Civil A1212cal No.683‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellan versus M/s. SIKANDAR LIMITED‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No. 17 of 1986). Civil Appeal No.684‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. R. LINTAS LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.27 of 1986). Civil Appeal No.685‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. PAK. CHEMICALS LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.C. No.112 of 1984). Civil ARpol No.686‑Kof 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. FEEDAI AGENCIES LIMITED‑‑Respondent (On appeal from the judgment dated 30‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.3 of 1984). Civil Ar)t.,)eal No.805‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. WOOD WARDS PAKISTAN LIMITED‑‑Respondent (On appeal from the judgment dated 22‑5‑1990 of the Sindh High Court, Karachi in I.T.C. No.16 of 1990). Civil A1212eal No.812‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant M/s. INTERNATIONAl. versus COMPUTERS LIMITED‑‑Respondent (On appeal from the judgment dated 20‑4‑1988 of the Sindh High Court, Karachi in I.T.R. No.163 of 1987). Civil Appeal No.813‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. INTER AGENCIES LIMITED‑‑Respondent (on appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.94 of 1985). Civil Appeal No.814‑K of 199 COMMISSIONER OF INCOME TAX‑ Versus M/s. ORIENTAL INVESTMENT & TRADING Appellant CO. LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Coart, Karachi in I.T.R. No.23 of 1985). Civil A12peal No.815‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. CITI BANK, NA. KARACHI‑‑Respondcnt (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.115 of 1984). Civil Appeal No.816‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MERCANTILE FINANCE CORPORATION LTD.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.142 of 1984). Civil A1212eal No.817‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appcllant versus M/s. PAK OCEAN SHIPPING CO.‑‑Respondent (On appeal from the judgment dated 17‑9‑1987 of the Sindh High Court, Karachi in I.T.R. No.36 of 1986). Civil Appeal No.831‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. EXXON CHEMICAL (PAK.) LTD.‑‑Respondent (On appeal from the judgment dated 12‑4‑1990 of the Sindh High Court, Karachi in I.T.C. No.41 of 1990). COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. EXXON CHEMICAL (PAK.) LTD.‑‑Respondent (On appeal ‑from the judgment dated 12‑4‑1990 of the Sindh High Court, Karachi in I.T.C. No.34 of 1990). Civil Appeal No.859‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. EXXON CHEMICAL (PAK.) LTD.‑‑Respondent (On appeal from the judgment dated 1274‑1990 of the Sindh High Court, Karachi in I.T.R. No.40 of 1990). Civil Appeal No.868‑K of 1990 COMMISSIONER OF INCOME TAX Appellant versus M/s. BOOTS COMPANY PAKISTAN LTD.‑‑Respondent (On appeal from the judgment dated 23‑5‑1990 of the Sindh Higb Court, Karachi in I.T.R. No.5 of 1990). Civil.Appeal No.72‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. BANK OF TOKYO LTD.‑‑Respondent (On appeal from the judgment dated 15‑11‑198V of the Sindh High Court, Karachi in I.T.R. No.86 of 1987) Civil Appeeal No.131‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. PAK. CHEMICAL LTD.‑‑Respondent (On appeal from the judgment dated ‑29‑10‑1990 of the Sindh High Court, Karachi in I.T.R. No.6 of 1990). Civil Appeal No. 132‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. ALGEMENE BANK NETHERLAND (NA.)‑‑Respondent (On appeal from the judgment dated 29‑10‑1990 of the Sindh High Court, Karachi in I.T.C. No.99 of IWO) Civil A1212eal No.133‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. PAKISTAN CABLES LIMITED‑‑Respondent (On appeal from the judgment dated 29‑10‑1990 of the Sindh High Court, Karachi in I.T.C.*No.73 of 1990). Civil Appeal No.134‑K of 1991 COMMISSIONER OF INCOME TAX Appellant versus M/ s. PAKISTAN CABLES LIMITED‑‑Respondent (On appeal from the judgment dated 29‑10‑1990 of the Sindh High Court, Karachi in I.T.R. No.142 of 1987). Civil Appeal No.147‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MUGHAL TOBACCO CO. LTD.‑‑Respondent (On appeal from the judgment dated ~ 11‑4‑19( )1 of the Sindh High Court, Karachi in I.T.R. No.68 of 1984). Civil Appeal No.179‑K _of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. LEVER BROS. PAKISTAN LIMITED‑‑Respondont (on appeal from the judgment dated 30‑4‑1991 of the Sindh High Court, Karachi in I.T.C. No.378 of 1990). Civil Appeal No.183‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s., SHAHAB INDUSTRIES LTD.‑‑Rcspondent (On appeal from the judgment dated of the Sindh High Court, Karachi in I.T.C. No.44 of 1984) Civil Appeid No.184‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. JAFFAR BROS. LTD.‑‑Respondent (On appeal from the judgment dated 21‑3‑1991' of the Sindh High Court, Karachi in I.T.C. No.38 of 1984). Civil Appeal No.185‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. SHAHAB INDUSTRIES LTD,‑‑Respondent (On appeal from the judgment dated 21‑3‑1991 of the Sindh Hi$h Court, Karachi in I.T.C. No.36 of 1984). Civil Appeal No,186‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellantversus M/s. GRIND‑WHEEL PAK. TD.‑‑Respondent (On appeal from the judgment dated 11‑4‑1991 of the Sindh High Court, Karachi in I.T.R. No.93 of 1984). Civil'Al2peal No.201‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MONOTYPE CORPORATION‑‑Respondent (On appeal from the judgment dated 11‑3‑1991 of the Sindh High Karachi in I.T.R. No.47 of 1985). Civil A1212eal No.203‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. PREMIER OIL CO. LTD.‑‑Respondent (On appeal from the judgment dated 21‑3‑1991 of the Sindh High Court, Karachi in I.T.C. No.41 of 1984). Civil Appeal No.204‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant Versus M/s. BROOKE BOND PAKISTAN LTD.‑‑Respondent (On appeal from the judgment dated 14‑3‑1991 of the Sindh High Court, Karachi in I.T.C. No. 343 of 1990). Civil Appeal No.209‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. FATEH ALLY CHEMICAL INDUSTRIES‑‑Respondcnt (On appeal from the judgment dated 2‑5‑1991 of the Sindh High Court, Karachi in I.T.C. No.110 of 1984), Civil Appeal No.114‑K of 1990 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. PAKISTAN OXYGEN LIMITED‑‑Respondent (On appeal from the judgment dated 20‑5‑1991 of the Sindh High Court, Karachi in I.T.R. No.465 of 1990). Civil Appeal No.230‑K of 1991‑ COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. CITI BANK NA.‑‑Respondent (On appeal from the judgment dated 2‑5‑1991 of the Sin.dh High Court, Karachi in I.T.R. No.114 of 1984). Civil Appeal No.239‑K of 1991 COMMISSIONER OF INCOME TAX Appellant versus M/s. EASTERN ART LIMITED‑‑Respondent (On appeal from the judgment dated 30‑4‑1.991 of the S.indh High Court, Karachi in I.T.C. No.106 of 1984). Civil Appeal No.244‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appcllant versus (Sic) (On appeal from the judgment dated 30‑5‑1991 of the Sindh High Court, Karachi in I.T.C. No.338 of 1990). Civil Appeal No.326‑K of 1991 COMMISSIONER OF INCOME TAX‑‑Appellant Versus M/s. SECURITY PAPER LIMITED‑‑Rcspondent (on appeal from the judgment dated 17‑9‑1991 of the Sindh High Court, Karachi in I.T.R. No.95 of 1985). Civil Petition No.36‑K of 122 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. PAKISTAN PETROLIUM LTD.‑‑Respondcnt (On appeal from the judgment dated 12‑11‑1991 of'thc Siodh High Court, in I.T.R. No.14 of 1987) Civil Petition No.45‑K of 1222 COMMISSIONER OF INCOME TAX‑‑Appdla'nt' versus M/s. INTERNATIONAL TANK TERMINAL LTD.‑‑Respondent (On appeal from the judgment dated 4‑11‑1991 df the Sifidh High Court, in I.T.R. No.7 of 1987). Civil Petition No.46‑K of I COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MOGHAL TOBACCO CO. PAKISTAN LTD.‑‑Rcspondent (On appeal from the judgment dated 11‑11‑1991 of the Sindh High Court, in I.T.R. No.12 of 1987). Civil Petition No,47‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appcilant versus M/s. ASPRO NICHOLAS PAKISTAN LTD.‑‑Respondcnt (On appeal from the judgment dated 11‑11‑1991 of the Sindh High Court, in I.T.R. No.10 of 1987). Civil Petition No,48‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. BOOTS CO. (PAKISTAN) LTD.‑‑Respondent (On appeal from the judgment dated 18‑12‑1991 of the Sindh High Court, in'I.T.R. No37 of 1987). Civil Petition No.49‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. SHAHTAJ SUGAR MILLS‑‑Respondcnt (On appeal from the judgment dated 11‑11‑1991 of the Sindh High Court, in I.T.R. No. 8 of V87). Civil Petition No.50‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. FATEHALLY CHEMICALS LTD.‑‑Respondent (On appeal from the judgment dated 13‑11‑1991 of the Sindh High Court, Karachi in 1,T.R. No.16 of 1987). Civil Petition No.51‑K of 1992 COMMISSIONER OF INCOME TAX Appellant versus M/s. METALEX CORPORATION LTD., KARACHI‑‑Respondent .(On appeal from the judgment dated 21‑11‑1991 of the Sindh High Court, in I.T.R. No.32 of 1987). Civil Petition No.52‑K of, 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus COMMISSIONER OF INCOME TAX‑‑Appellant M/s. BENGAL VEGETABLE INDUSTRIES LTD.‑‑Respondent .(On appeal front the judgment dated 13‑11‑1991 of the Sindh High Court, in I.T.R. No.15 of 1987). Civil Petition No.66-K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus AWAMI AUTOS LTD

Respondent. (On appeal from the judgement dated 5‑12‑1991 of the Sindh High Court in I.T.R.No. 58 of1987) Civil Petition No.67- K of 1992 COMMISSIONER OF INCOME TAX‑Appcl1ant versus M/s. BAWANY SUGAR MILLS LTD.‑‑Respondent (On appeal from the judgment dated 25‑11‑1991of the Sindh High Court, in I.T.R. No.33 of 1987). Civil Petition No. 68‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. NAYA DAUR MOTORS LTD‑‑Respondent (on appeal from the judgment dated 5‑12‑1991 of the Sindh High Court, in I.T.R. No. 57 of 1987). Civil Petition No.69‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant Versus M/s. EXXON,CHEMICAL (PAKISTAN) LTD.‑‑Rcspondcnt (On appeal, from the judgment dated 26‑11‑1991 of the Sindh High C6vit' in I.T.R. No. 40 of 1987). Civil Petition No.75‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s -- NORINPACE,LTD..,,.KARACHI‑‑Respondent (On Appeal from, the judgment dated 28‑11‑1991 of the Sindh High Court; in I.T. R_'. No. 48 of 1987). Civil Petition No.7f)‑K.of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant, versus THE INDUSTRIAL , AIR CONTROL LTD., KARACHI‑‑Rcspondcnt (On appeal from the judgment dated 5‑12‑1991 of the F>indh High Court, in I.T.R. No. 56 of 1987). Ciyil Petition No.77‑K of. 1992 COMMISSIONER OF INCOME TAX Appellant versus M/s. METROfq~ITAN AGENCIES LTD, KARAq"!‑‑Respondent (Op appeal, from the judgment dated 107,12‑,1991 of the Sindh High C6 ulrt,la I.T.R. No.62 of ‑1987''). Civil Petition No.78‑K.of l992 COMM! IONEROFIN OMETAX7‑Appellant versus M/ s PAKJSTAN VITAMIN PRODUCTSS LTD.‑‑ Respondent (On appeal from Judgement dated 2141‑1991 of the Sindh High Court I.T.R. No.25 of 1987). Civil Petition No.79‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. HOMIE JAMSHED NASSERWANJEE LTD.‑‑Rcspondcnt (on appeal from the judgment dated 5‑12‑1991 of the Sindh High Court, in I.T.R. No.51 of 1987). Civil Petition No.81‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MECO SALES LIMITED, KARACHI‑‑Respondcnt (On appeal from the judgment dated 27‑11‑1991, of the Sindh High Court, in I.T.R. No.43 of 1987). Civil Petition No.82‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. MUGHAL TOBACCO CO. LTD., KARACHI‑‑Respondent (On appeal from the judgment dated 31‑10‑1991' of the,Sindh High Court, in I.T.R. No.2 of 1987). Civil Petition No.83‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. MAKERWAL COLLIERIES LTD., KARACHI‑‑Respondent (On appeal from the judgment dated 11‑124091 of the Sindh High Court, in I.T.R. No.66 of 1987). Civil Petition No.84‑K of 1992 COMMISSIONER OF . INCOME TAX‑‑Appellant versus M/s. SIEMENS PAKISTAN ENGINEERING CO., LTD. Respondent (On appeal from the judgment dated 441‑1991 of the Sindh High Court, in I.T. R. No.6 of 1987). Civil Petition No.88‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appel1ant ,versus M/s. MARCK SHARP & DHOME (PAKISTAN) LTD. Respondent (On appeal from the judgment dated 28‑11‑1991 of the Sindh High Court, in I.T.R. No. 47 of 1987). Civil Petition No.89‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. GUEST KEEN AND NETTLE FOLDS IN PAKISTAN, LTD.‑' Respondent (On appeal from the judgment dated 4‑12‑1992. of the Sindh High Court, in I.T.R. No.54 of 1987). Civil Petition No.90‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s A.C.I. PAKISTAN LTD., KARACHI Respondent (On appeal from the judgment dated 25‑11‑1991 of the Sindh High Court, in I.T.R. No.34 or 1987). Civil Paition No.93‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. E.M (PAKISTAN) LTD., KARACHI‑ Respondent (On appeal from the judgment dated 10‑12‑1991 of the Sindh High Court, in I.T.R. No.61 of 1987), Civil Retition No,94‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. MUHAHID INDUSTRIES LTD., KARACHI Respondent (On appeal from the judgment dated 26‑11‑1991 of the Sindh High Court, in I.T.R. No38 of 1987). Civil Petition No.98‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. PAKISTAN BURMAH, SHELL LTD., KARACHI Respondent (On appeal from the judgment dated 9‑12‑1991 of the Sindh High Court, in I.T.R. No.60 of 1987). Civil Petition No.99‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. DADABHOY CERAMIC INDUSTRIES LTD. Respondent (On appeal from the judgment dated 14‑11‑1991 of the Sindh High Court, in I.T.R. No. 17 of 1987). Civil Petition No.106‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. BEECHAM PAKISTAN LTD., KARACHI Respondent (On appeal from the judgment dated 29‑12‑1991 of the Sindh High Court, in I.T.R. No.424 of 1990). Civil Petition No.1 17‑K of 1992 COMMISSIONER OF INCOME TAX Appellant versus M/s. FREYSINET (PAKISTAN) LTD., KARACHI Respondent (On appeal from the judgment dated 6‑11‑1991 of the Sindh High Court, in I.T.R. No.5 of 1987). Civil Petition No118‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. SERVICE AND SALE (PAK.) LTD., KARACHI‑‑ Respondent (On appeal from the judgment dated 31‑10‑1991 of the Sindh High Court, in I.T.R. No.4 of 1987). Civil Petition No. I 19‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. SHAMS TRADING COMPANY LTD., KARACHI‑‑Respondent (On appeal from the judgment dated 31‑10‑1991 of the Sindh High Court, in I.T.R. No.3 of 1987). Civil Paition No.1‑20‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appcilant Versus M/s. PAK CHEMICAL LTD., KARACHI‑‑ Respondent (On appeal from the judgment dated 12‑11‑1991 of the Sindh High Court, Karachi in I.T.R. No.31 of 1987). Civil Petition No.122‑K of 1992 COMMISSIONER OF INCOME TAX‑‑ Appellant versus M/s. MAY & BAKERS LTD., KARACHI‑‑Respondent (On appeal from the judgment dated 1.4‑11‑1991 of the Sindh High Court, in I.T.R. No.22 of 1987). Civil Petition No.123‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant versus M/s. F.D. ME77A & CO. LTD., KARACHI Respondent (on appeal from the judgment dated 14‑11‑1991 of the Sindh 'High Court, Karachi in I.T.R. No.6 of 1980). Civil Petition No.133‑K of 1992 COMMISSIONER OF INCOME TAX Appe1lant versus M/s. INLAND TRADING CORPORATON LTD., KARACHI Respondent (On appeal from the judgment dated 17‑12‑1991 of the Sindh High Court, in I.T.R. No.77 of 1987) versus M/s. GLAXO LABORATORIES (PAYL) LTD., KARACHI‑‑ Respondent (On appeal from the judgment dated 3‑12‑1991 of the Sindh High Court, in I.T.R. No.102 of 1985). Civil Petition No.136‑K of 1992 COMMISSIONER OF INCOME TAX‑‑Appellant ,versus M/s. COMMODITIES TRADING LTD., KARACHI‑‑Respondent (On appeal from the judgment dated 16‑12‑1991 of the Sindh High Court, Karachi in I.T.R. No.74 of 1987). Civil Petition No.147‑K of 1992 COMMISSiONER OF INCOME TAX‑‑Appellant versus M/s. PAKISTAN AUTOMOBILE CORPORATION LTD.‑‑Respondent (On appeal from the judgment dated 16‑12‑1991 of the Sindh High Court, Karachi in I.T.R. No.72 of 1987). Civil Appeals Nos. 325‑K, 326‑K, 526‑K to 530‑K, 554‑K, 604‑K, 648‑K to 687‑K, 805‑K, 812‑K to 817‑K, 831‑K 832‑K, 859‑K, 868‑K of 1990) No.72‑K, 131‑K to 134‑K, 147‑K, 179‑K, 183‑K to 186‑K, 201‑K to 204‑K, 209‑K, 114‑K, 230‑K, 239‑K, 244‑K, 326‑K of 1991, 36‑K, 45‑K to 52‑K, 66‑K to 69‑K, 75‑K to 794C, 81‑K to 84‑K, 88‑K to 90‑K, 93‑Y., 94‑K, 98‑K, 99‑K, 106‑K, 117‑K to 120‑K, 122‑K, 1234~ 133‑K, 134‑K, 136‑K, 147‑K, of 1992, decided on 19th April, 1992. (a) Income‑tax Act (XI of 1922)‑‑‑ S. 18‑A ‑‑‑ Finance Act (XXX of 1977), Schedule I, Part III [as amended by Finance (Amendment) Ordinance (11 of 1978)] ‑‑‑ Constitution of Pakistan (1973), Art.185(3) ‑‑‑ Leave to appeal was granted in the case, as the interpretation placed on the expression "retained income" in Part III of the Finance Ordinance, 1977 (as amended by Ordinance (11 of 1978) by the High Court for calculating the amount subject to the levy of surcharge involved a question of law of public importance which required an authoritative decision by Supreme Court. [p. 2861 A (b) Income‑tax Act (XI of 1922)‑‑ ‑‑‑‑ S.18‑A ‑‑‑ Finance Act (XXX of 1977), Schedule 1, Part III [as amended by Finance (Amendment) Ordinance (11 of 1978)) ‑‑‑ Income Tax Ordinance (XXXI of 1979), S.53 ‑‑‑ Amount paid under S.18‑A is not a payment of the income tax in advance but merely the credit of an amount with the Central Government, which can be utilized and adjusted to the extent necessary towards the ultimate liability of income tax found due after it has been 'determined ‑‑‑ Amount retained to meet the income tax liability payable for the relevant assessment year in the account books can legitimately be categorised as "retained income" and accordingly its inclusion for purposes of working out the income retained for meeting the working capital requirements of the assessee company for purposes of levy of surcharge would be justified. Question involved in the present case was whether the assessee Companies despite having paid considerable amounts of money in advance to the Income Tax Department, under section 18‑A of the Income Tax Act, 1922 were still entitled to separately provide in their balance sheets another amount in respect of their true liability in relation to the tax payable for the relevant assessment year and claim the same as "income retained" for meeting their working capital requirements? The answer to this question would depend upon the determination of the exact character of the payment made by an assessee under section 18‑A namely whether it was payment of tax or a payment on some other account. [p. 2861 B A careful reading of the S.18‑A, Income Tax Act, 1922 indicates that the amount which is paid quarterly to the credit of the Central Government by the assessee has not been described in the text of the provision, as advance payment of tax (although these words appear in the marginal note of section 18‑A) but are called payments made to the credit of the Central Government. Under the provisions of the Act, tax is charged in pursuance of the provisions of section 3 thereof. Herein rates at which income tax is to be charged is provided. There is no direct nexus between the payment made under section 18‑A and the payment which is made under section

3. The nature of the payment made under section 18‑A becomes clearer when, in addition to the provision of subsection (1) of section 18‑A (providing for quarterly payments) the provisions of subsections (5) and (5A) are considered. These provisions show that the payment being made under section 18‑A is a payment made merely on account, to be adjusted against the charge of income tax as finally ascertained and determined on completion of the regular assessment by the I.T.O. for the relevant assessment year. This is manifest from the circumstance that simple interest at the rate of 4% per annum is to be paid by the Central Government on the amount paid under section 18‑A from the date of the payment to 30th June of the financial year in which the amount was paid. This fact indicates that the amount payable under section 18‑A is not a tax but merely a pre‑payment of an amount towards the tax due. The said amount does not become the property of the Central Government but remains vested in the assessee company. Undoubtedly, it is an amount which must be paid in advance, in respect of tax, before it becomes due. But it (the tax) becomes due only after regular assessment and if on regular assessment nothing or a lesser amount is found due and payable; the Government, in that event, shall have to return the amount paid or the sum paid in excess with interest from the date of payment to the date of such assessment. Accordingly, the amount paid under section 18‑A is not a payment of the "income tax" in advance but merely the credit of an amount with the Central Government, which can be utilised and adjusted to the extent necessary towards the ultimate liability of income tax found due after it has been determined. Hence, the amount retained to meet the income tax liability payable for the relevant assessment year in the account books can legitimately be categorised as "retained income". Accordingly, its inclusion for purposes of working out the income retained for meeting the working capital requirements of the assessee company for purposes of levy of surcharge would be justified. [p. 2871 C Payment under section 53 of the Income Tax Ordinance, 1979 is expressly stated to be by way of "advance tax". This change made in law, which has replaced the earlier law (namely the Income Tax Act of 1922) confirms that the payment required to be made under section 18‑A of the said Act to the Central Government was a payment on account towards the payment of a tax which is determined after regular assessment to be payable in the future assessment vear. [p. 2881 D Income tax liability payable for the relevant assessment year could be included for purposes of working out "retained income" for levy of surcharge. [p. 2881 E (c) Finance Act (XXX of 1977)‑‑‑ ‑‑‑‑ Schedule 1, Part III [as amended by Finance (Amendment) Ordinance (II of 1978)] ‑‑‑ Income tax liability payable for the relevant assessment year could be included for purposes of working out "retained income" for levy of surcharge. [p. 2881 E Khalifa Salahuddin, Advocate Supreme Court instructed by M.S. Ghaury, Advocate‑on‑Record for Respotidents (in C.As.Nos. 325‑Y., 326‑TC, 5284~ 529‑& 652‑K, 685‑IC, 812‑K of 1990, 72‑& 131‑K, 133‑& 134‑K and 204‑K of 1991). Nemo for the Respondents (in other Appeals).