COMMISSIONER INLAND REVENUE, LAHORE vs EDUCATIONAL EXCELLENCE LIMITED, LAHORE Ss

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

COMMISSIONER INLAND REVENUE, LAHORE VS EDUCATIONAL EXCELLENCE LIMITED, LAHORE Ss. 113, 120, 122 (5a) & First Schedule Part I, Division II---Circular No. 17 / 2004, dated 17-07-2004, issued by Federal Board of Revenue---Tax incentives---Payment of minimum tax---Carry forward tax credit---appellant / taxpayer company was aggrieved of tax incentives and payment of minimum tax---High Court maintained the order passed by appellate Tribunal Inland Revenue declaring that expression "actual tax payable" in Section 113(2)(c) of Income Tax Ordinance, 2001 meant that tax payable under Part I, Division II in First Schedule to Income Tax Ordinance, 2001 could be zero or otherwise, and that the excess amount of minimum tax which was paid over and above zero tax payable due to assessed losses for the years 2007 and 2008 was available for adjustment against appellant's / taxpayer's tax liability for the succeeding tax year---Validity---Verbiage of Circular No. 17 / 2004, dated 17-07-2004, issued by Federal Board of Revenue was unambiguous and clear as that of Section 113(2)(c) of Income Tax Ordinance, 2001---First sentence of Section 113(2)(c) of Income Tax Ordinance, 2001 is a clarification as to the persons who are required to pay minimum tax---Mandate of Section 113(1) of Income Tax Ordinance, 2001 that loss incurring companies and companies whose tax on income is assessed less than 0.5% of its declared turnover are to pay minimum tax---Circular No. 17 / 2004, dated 17-07-2004, issued by Federal Board of Revenue states that profit yielding companies paying [minimum] tax [which is] more than turnover tax do not get credit for their contribution to national exchequer [in the form of minimum tax] during the years of loss or lower income---This simply is a statement as to the state of affairs prevailing before insertion of Section 113(2)(c) of Income Tax Ordinance, 2001 through Finance act, 2004---Prior to such insertion, benefit of credit in the form of carry forward for adjustment against tax liability in subsequent tax years was not available to persons paying minimum tax under Section 113(1) of Income Tax Ordinance, 2001---Circular No. 17 / 2004, dated 17-07-2004, issued by Federal Board of Revenue does not state that benefit of such carry forward would also be available to companies paying minimum tax but having no tax payable due to losses---Circular No. 17 / 2004, dated 17-07-2004, issued by FBR also does not state that law had been amended to allow facility of carry forward of minimum tax on turnover for next five years to those companies paying minimum tax but having no tax payable due to losses---Even otherwise, circulars issued by FBR do not and cannot override explicit language of statute---Supreme Court declined to interfere in concurrent judgments passed by two Courts below---appeal was dismissed.

COMMISSIONER INLAND REVENUE, LAHORE vs EDUCATIONAL EXCELLENCE LIMITED, LAHORE Ss — 2025 SCMR 1248 SUPREME-COURT

Case information

Judgment text as reported

Other judgments reported in 2025 SCMR