SNAMPROGETTI ENGINEERING B.V. vs COMMISSIONER OF INLAND REVENUE ZONE-II, L — 2023 PTD 863 LAHORE-HIGH-COURT-LAHORE

Case information

Citation: 2023 PTD 863 LAHORE-HIGH-COURT-LAHORE
Court: Lahore High Court
Year: 2023
Reporter: PTD
Parties: SNAMPROGETTI ENGINEERING B.V. vs COMMISSIONER OF INLAND REVENUE ZONE-II, L
Subject matter: Tax & Customs
Provisions referred to: S. 107

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

SNAMPROGETTI ENGINEERING B.V. VS COMMISSIONER OF INLAND REVENUE ZONE-II, L.T.U, ISLAMABAD S. 107(2)(c)---Convention between the Kingdom of the Netherlands and the Islamic Republic of Pakistan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income' ("Convention"), Arts. 5 & 7---Non-resident company---Engineering services provided by the petitioner (non-resident company) to a local company---Exemption from tax under the domestic tax regime of Pakistan---Petitioner (non-resident company) and the local company did not have a contractual relationship ascribing any building, construction, installation, assembly project or supervisory activities role to the former---Rather, the role of the petitioner was limited to providing engineering services only---Tax department failed to bring on record any evidence satisfying the threshold requirement of Clause 4 of Article 5 of the Convention that the petitioner had furnished services within Pakistan through employees or other personnel for a period or periods aggregating 'more than four months within any twelve months period', which was necessary for any activity of furnishing services to constitute a permanent establishment---Petitioner was entitled to the exemption provided in the Convention, and the income derived by the petitioner from providing the services to the local company was exempt from income tax in Pakistan because of not fulfilling the conditions necessary to constitute a permanent establishment as set out in Clause 4 of Article 5 of the Convention.

Other judgments reported in 2023 PTD

2023 PTD 1600 SUPREME-COURTALLIED BANK LIMITED VS The COMMISSIONER OF INCOME TAX, LAHORE Fiscal statute---Literal approach of interpretation---Literal approach is to b…
2023 PTD 1600 SUPREME-COURTALLIED BANK LIMITED VS The COMMISSIONER OF INCOME TAX, LAHORE Ss. 2(13), 122(5a), 210 & 211---amendment of assessments---Commissioner (Inlan…
2023 PTD 1600 SUPREME-COURTALLIED BANK LIMITED VS The COMMISSIONER OF INCOME TAX, LAHORE Maxim "delegatus non potest delegare"---Scope and meaning---Delegation of powe…
2023 PTD 1590 SUPREME-COURTCOMMISSIONER OF INCOME TAX, COMPANIES ZONE, ISLAMABAD VS FAUJI FOUNDATION LIMITED Ss. 22 & 30---'Income from other sources' or 'income from…
2023 PTD 1514 SUPREME-COURTFEDERATION OF PAKISTAN through Secretary Revenue Division/Chairman, Federal Board of Revenue, Islamabad VS SUS MOTORS (PVT.) LTD. S. 81---Im…
2023 PTD 1492 SUPREME-COURTCOMMISSIONER INLAND REVENUE ZONE-IV, LARGE TAXPAYER UNIT, KARACHI VS AL-ABID SILK MILLS LTD., A-39, MANGHOPIR ROAD, SITE, KARACHI Fiscal sta…

Back to the case-law library · Search Pakistani case law in Urdu or English