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COMMISSIONER INLAND REVENUE, LAHORE vs AZAM TEXTILE MILLS LIMITED, LAHORE Ss — 2025 PLD 364 SUPREME-COURT

Case information

Citation
2025 PLD 364 SUPREME-COURT
Court
Supreme Court of Pakistan
Year
2025
Reporter
PLD
Parties
COMMISSIONER INLAND REVENUE, LAHORE vs AZAM TEXTILE MILLS LIMITED, LAHORE Ss
Subject matter
Tax & Customs
Provisions referred to
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

COMMISSIONER INLAND REVENUE, LAHORE VS AZAM TEXTILE MILLS LIMITED, LAHORE Ss. 112(1), 153(7)(iii), 169 & 177---amended assessment---Transfer of raw material---Pre-conditions of sale---Taxation officer interpreted transaction concerning transfer of raw materials as a sale and assessed the same under section 169 of Income Tax Ordinance, 2001---Order of appellate Tribunal Inland Revenue, setting aside amended assessment was maintained by High Court---Validity---Sale of goods as elucidated by section 153 (7) (iii) of Income Tax Ordinance, 2001 encompasses any transaction in which goods are sold, irrespective of whether payment is made in cash or on credit, and is applicable regardless of the existence of a formal written contract---according to such definition, it is mandated that a sale must involve receipt of consideration, which can be either cash or credit---There was absence of such critical element of consideration with respect to transactions in question---Transactions documented in ledgers merely represented a straightforward transfer of raw materials from one entity to another and was devoid of any characteristics of a sale---Tax obligations outlined in section 153 of Income Tax Ordinance, 2001 did not pertain to transfer of raw materials to sister concern---Supreme Court declined to interfere in the judgment passed by High Court---Petition for leave to appeal was dismissed and leave was refused.

Other judgments reported in 2025 PLD

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