PAK LAW GPT — Pakistan Case Law AI justice scale emblemPAK LAW GPTCase law · Urdu & English

COMMISSIONER INLAND REVENUE, LTU, LAHORE vs WORLD CALL TELECOM LTD — 2024 PTD 358 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN

Case information

Citation
2024 PTD 358 INLAND REVENUE APPELLATE TRIBUNAL OF PAKISTAN
Year
2024
Reporter
PTD
Parties
COMMISSIONER INLAND REVENUE, LTU, LAHORE vs WORLD CALL TELECOM LTD
Subject matter
Tax & Customs

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

COMMISSIONER INLAND REVENUE, LTU, LAHORE VS WORLD CALL TELECOM LTD. Ss.113, 120 & 122(5a)---Turnover---Sale of assets and scrap---Scope---Company deriving income from telecom and broadband services---Minimum tax, charging of---Scope---Officer Inland Revenue charged the taxpayer/company minimum tax on sale of assets and scrap which charge was deleted by the Commissioner---Department assailed later order before the appellate Tribunal Inland Revenue ('Tribunal')---Stance of the OIR was that the sale of any item with view to earn profit qualified for inclusion of the same in the turnover and sale of fixed assets was also part and parcel of taxpayer's business activity---Validity---Scrap was generated, which was sold, only to reduce the cost of material consumed in the manufacturing process; further, scrap churned out in the process of the assesse's manufacturing activities did not form part of the trading goods or stock-in-trade of the assesse; hence, the scrap sales could not be taken as part of turnover of the business carried out by the assesse---assesse/company was not engaged in the business of sale of scrap---Turnover meant the value of goods purchased/ sold in the course of carrying of business---Thus, scrap by the assesse/company did not have element of turnover in the present case---Tribunal viewed that the scrap sales could not be taken as a part of turnover for the purpose of deduction---Commissioner (appeals) had rightly deleted the charge of minimum tax on sale of scrap---appeal filed by the Department was dismissed, in circumstances.

Other judgments reported in 2024 PTD

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