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KASHF FOUNDATION vs CHIEF COMMISSIONER INLAND REVENUE, LTU, FEDERAL BOARD OF REVENUE S — 2024 PTD 808 LAHORE-HIGH-COURT-LAHORE

Case information

Citation
2024 PTD 808 LAHORE-HIGH-COURT-LAHORE
Court
Lahore High Court
Year
2024
Reporter
PTD
Parties
KASHF FOUNDATION vs CHIEF COMMISSIONER INLAND REVENUE, LTU, FEDERAL BOARD OF REVENUE S
Subject matter
Criminal
Provisions referred to
S. 2; 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

KASHF FOUNDATION VS CHIEF COMMISSIONER INLAND REVENUE, LTU, FEDERAL BOARD OF REVENUE S.2(36)---Income Tax Rules, 2002, R. 217---Non-Profit Organization---Exemptions and privileges---Petitioner company claimed certain exemptions and privileges attached to and otherwise available to organizations qualifying for Non-Profit Organization without appreciating the conditions---Validity---Effect of limiting such exemptions and privileges to any Non-Profit Organization regime, required strict application and enforcement---Petitioner company was unworthy and not entitled to availing such exemptions or privileges in the wake of transactions transacted having effect of conferring private benefit attributable and realized between two points in time---Despite all commercial prudence applied to justify transactions, the reality of conferring private benefits could neither be effaced nor belittled, while appreciating the effect of under-priced loan, injection of equity by petitioner upon purchase of shares of Kashf Holdings (Pvt.) Limited, at premium price - seven times the face value of share---And then was the decision of off-loading of shares of Microfinance Bank which showed that transactions in question were not intended to secure firm corporate footing for petitioner in Microfinancing Bank but manifested reaping of private benefits---Mischief intended to be remedied through limitations prescribed under S. 2(36) of Income Tax Ordinance, 2001 and R. 217(1)(b) of Income Tax Rules, 2002 was traced and correctly targeted---High Court declined to interfere in the orders passed by authorities, as there was no jurisdictional defect manifested in exercise of powers available under R. 217(1)(b) of Income Tax Rules, 2002---Constitutional petition was dismissed, in circumstances.

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