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The COMMISSIONER INLAND REVENUE, ZONE-II, LARGER TAXPAYERS UNIT, LAHORE vs KOHINOOR SUGAR MILLS LIMITED S — 2021 SCMR 536 SUPREME-COURT

Case information

Citation
2021 SCMR 536 SUPREME-COURT
Court
Supreme Court of Pakistan
Year
2021
Reporter
SCMR
Parties
The COMMISSIONER INLAND REVENUE, ZONE-II, LARGER TAXPAYERS UNIT, LAHORE vs KOHINOOR SUGAR MILLS LIMITED S
Subject matter
Tax & Customs
Provisions referred to
S. 12; Income Tax Ordinance

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

The COMMISSIONER INLAND REVENUE, ZONE-II, LARGER TAXPAYERS UNIT, LAHORE VS KOHINOOR SUGAR MILLS LIMITED S. 12(18)---Deemed income of assessee---Scope---Payment received in 'advance' by assessee for the sale and supply of goods---Whether such advance payment was deemed to be income of assessee and thus taxable---Held, that the words 'loan' and 'advance' were used synonymously---Though it was possible to also consider the "immediate" payment of price for the sale of goods (for deferred delivery of the same) to be an 'advance', however, the word 'advance' as used in S. 12(18) of the Income Tax Ordinance, 1979 ('the 1979 Ordinance'), did not include such payment of price---Furthermore amounts in question were in any case the gross receipts of each assessee for the supply/sale of goods (i.e., were brought to revenue account in the ordinary course of business) and were taxed accordingly---To bring such amounts also within the ambit of the S. 12(18) of the 1979 Ordinance and hold the assesses liable to tax for that reason as well would, in the facts and circumstances of the present cases, be tantamount to an impermissible double taxation---Section 12(18) of the 1979 Ordinance had no application to the present cases---Petitions for leave to appeal were dismissed and leave was refused.

Other judgments reported in 2021 SCMR

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