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PREMIER MERCANTILE SERVICES (PVT.) LTD. vs COMMISSIONER INLAND REVENUE Ss — 2025 PTD 1169 KARACHI-HIGH-COURT-SINDH

Case information

Citation
2025 PTD 1169 KARACHI-HIGH-COURT-SINDH
Court
Sindh High Court
Year
2025
Reporter
PTD
Parties
PREMIER MERCANTILE SERVICES (PVT.) LTD. vs COMMISSIONER INLAND REVENUE Ss
Subject matter
Tax & Customs
Provisions referred to
S. 108; 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

PREMIER MERCANTILE SERVICES (PVT.) LTD. VS COMMISSIONER INLAND REVENUE Ss.21(m), 39, 85, 108 & 133(1)---Reference---Loan to associated company---Salaries---Proof---Fact not assailed by authorities---Applicant / taxpayer contended that amount in question was never an income determined in terms of S. 108 of Income Tax Ordinance, 2001 nor amount of loan given to an associated company could be deemed to be an income without a deeming clause---Validity---If associated concern had borrowed such money, then that associated concern would have paid interest, which could be claimed as an expense---Advanced amount as a loan never resulted in any ownership of property in the name of applicant / taxpayer, which was purchased by associated concern in its own name---This was not even a capital expense---High Court declined to interfere in the order passed by Appellate Tribunal Inland Revenue, as it was justified in setting aside finding of Commissioner (Appeals)---High Court set aside order of Appellate Tribunal Inland Revenue to the extent of salaries, as respondent / authorities had not assailed such finding of Assessing Officer in respect of payment of salaries and wages before the Commissioner (Appeals)---Amount which was not agitated by applicant / taxpayer, was correctly added to its income in terms of S. 21(m) of Income Tax Ordinance, 2001---Reference was dismissed accordingly.

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