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TELENOR PAKISTAN (PVT.) LTD. vs APPELLATE TRIBUNAL INLAND REVENUE, ISLAMABAD Ss — 2024 PTD 619 ISLAMABAD

Case information

Citation
2024 PTD 619 ISLAMABAD
Court
Islamabad High Court
Year
2024
Reporter
PTD
Parties
TELENOR PAKISTAN (PVT.) LTD. vs APPELLATE TRIBUNAL INLAND REVENUE, ISLAMABAD Ss
Subject matter
Tax & Customs
Provisions referred to
S. 21; 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

TELENOR PAKISTAN (PVT.) LTD. VS APPELLATE TRIBUNAL INLAND REVENUE, ISLAMABAD Ss. 20 & 21(a)---Deductions in computing income chargeable under the head "Income from Business"---Deductions not allowed---Scope---Taxpayer returned losses with the claim that its deductible expenses exceeded its taxable income---Taxpayer had deducted from its taxable income, the sales tax paid on free air time by claiming it an expenditure in order to attract the customers---Department, after issuance of show-cause notice, disallowed such deduction---Order-in-original was assailed before two appellate forums but to no avail---Validity---Taxpayer had adopted its own marketing strategy to increase the business or attract the customers but such practice could not absolve it from payment of sales tax on the free air time and when the sales tax had been paid, the same could not be allowed to be considered in terms of expenses as the taxpayer had not booked any revenue against the free air time---Department had rightly disallowed the deduction in terms of S. 21(a) of the Income Tax Ordinance, 2001---Reference applications were dismissed.

Other judgments reported in 2024 PTD

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