2019 PLP 1565 (PTD)
E-VISION MANUFACTURING LTD. Versus FEDERATION OF PAKISTAN and others
| Citation | 2019 PLP 1565 (PTD) |
| Forum / Court | Lahore High Court |
| Bench Members | Ayesha A. Malik, J |
| Parties | E-VISION MANUFACTURING LTD. Versus FEDERATION OF PAKISTAN and others |
| Primary Law | Income Tax Ordinance (XLIX of 2001) |
Q1: What are the key laws and sections cited in 2019 PLP 1565 (PTD)?
This judgment primarily cites: Income Tax Ordinance (XLIX of 2001) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2019 PLP 1565 (PTD)?
The case was heard and decided by the Lahore High Court bench comprising: Ayesha A. Malik, J.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2019 PLP 1565 (PTD) (E-VISION MANUFACTURING LTD. Versus FEDERATION OF PAKISTAN and others). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- Kh. Farooq Saeed for Petitioner.
- Mustehsan Raza Awan for Respondents.
- 4. At the very outset, it its noted that this matter has been settled by this Court in 2013 PTD 1883 (supra) and in I.C.A. No.799/2013 dated 18.03.2014 titled "Commissioner Inland Revenue v. Nishat Dairy (Pvt.) Ltd". Therefore, there is no merit in the arguments of the learned counsel for Respondents. As per the judgment of this Court, since the Petitioner is entitled for tax exemption under Section 65D of the Ordinance it may be considered for this benefit at the beginning of the year rather than wait for adjustment at the end of the year. Furthermore, the Commissioner has to convey the entitlement for tax exemption under Section 65D of the Ordinance and issue a certificate accordingly. Consequently, this petition is allowed and Respondent No.6 is directed to consider its case for issuance of exemption certificate on merit and decide it accordingly.
Headnotes / Summary
S. 65-D
Taxpayer was income tax assessee who claimed tax credit under S. 65-D of Income Tax Ordinance, 2001 for tax period 01-09-2014 till 31-08-2019
Authorities denied such tax credit on grounds that there was no provision in Income Tax Ordinance, 2001 to grant exemption certificate for purposes of tax exemption
Such matter had already been settled by High Court and there was no merits in plea raised by authorities as taxpayer was entitled for tax exemption under S. 65-D of Income Tax Ordinance, 2001, it could be considered for such benefit at beginning of year rather than wait for adjustment at end of year
Commissioner had to convey entitlement for tax exemption under S. 65-D of Income Tax Ordinance, 2001 and to issue certificate accordingly
High Court directed the authorities to consider case of taxpayer for issuance of exemption certificate on merits and decide accordingly
Constitutional petition was allowed accordingly. Messrs Nishat Diary (Pvt.) Ltd through Company Secretary v. Commissioner Inland Revenue and 4 others 2013 PTD 1883 and Commissioner Inland Revenue v. Nishat Dairy (Pvt.) Ltd. I.C.A. No.799 of 2013 rel.
Judgment & Decree
AYESHA A. MALIK, J.
Through this petition, the petitioner has impugned the rejection of its application filed under Section 159(I) of the Income Tax Ordinance, 2001, ("Ordinance") for issuance of exemption certificate.
2. Learned counsel for the Petitioner states that the Petitioner claimed tax credit under Section 65D of the Ordinance for the tax period 01.09.2014 till 31.08.2019. This request was denied on the ground that there is no provision in the Ordinance to grant exemption certificate for the purposes of tax exemption. Learned counsel for the Petitioner argued that this matter has already been decided by this Court in "Messrs Nishat Diary (Pvt.) Ltd through Company Secretary v. Commissioner Inland Revenue and 4 others" (2013 PTD 1883) and in I.C.A. No.799/2013 dated 18.03.2014 titled "Commissioner Inland Revenue v. Nishat Dairy (Pvt.) Ltd." Wherein it was held that for the purposes of grant of exemption certificate, tax credit and tax exemption are the same as benefits available to the taxpayer to reduce their tax liability. Hence the Petitioner is entitled to the tax exemption under Section 65D of the Ordinance.
3. Report and parawise comments have been filed by the Respondents. It is stated by the learned counsel for the Respondents Nos. 5 and 6 that since the law does not provide for tax exemption under Section 65D of the Ordinance, hence the application of the Petitioner has been rightly rejected.
4. At the very outset, it its noted that this matter has been settled by this Court in 2013 PTD 1883 (supra) and in I.C.A. No.799/2013 dated 18.03.2014 titled "Commissioner Inland Revenue v. Nishat Dairy (Pvt.) Ltd". Therefore, there is no merit in the arguments of the learned counsel for Respondents. As per the judgment of this Court, since the Petitioner is entitled for tax exemption under Section 65D of the Ordinance it may be considered for this benefit at the beginning of the year rather than wait for adjustment at the end of the year. Furthermore, the Commissioner has to convey the entitlement for tax exemption under Section 65D of the Ordinance and issue a certificate accordingly. Consequently, this petition is allowed and Respondent No.6 is directed to consider its case for issuance of exemption certificate on merit and decide it accordingly. MH/E-2/L Petition allowed.