THE COMMISSIONER. OF INCOME-TAX-Applicant vs MESSRS SHENNIHON — 1971 PTD 429

Citation: 1971 PTD 429

Court: Sindh High Court

Year: 1970

Decision Date: 1970-12-31

Parties: THE COMMISSIONER. OF INCOME-TAX-Applicant vs MESSRS SHENNIHON JUDGMENT

Headnotes

Case cited as 1971 PTD 429

Judgment Text

Court Name: Sindh High Court Judge(s): Qadeer-ud-Din Ahmad, Mir Khuda Bakhsh Marri Title:THE COMMISSIONER. OF INCOME-TAX-Applicant vs MESSRS SHENNIHON JUDGMENT Reported As: 1971 PTD 429 Result: Reference answered in the affirmative Judgment JUDGMENT QADEERUDDIN AHMAD, C. J.-This reference has been made by the Income-tax Appellate 'tribunal, Karachi Bench, Karachi, on an application made to it by the Commissioner of Income-tax. The question proposed by the Commissioner has been referred to us and it is as follows: "Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that initial depreciation and additional depreciation can b: allowed under section 10(2) (vi) and rule 8(2) (now rule 9) of the Income-tax Rules in case of ships registered outside Pakistan and not installed in Pakistan and which did not ply in Pakistan for the first time ?" 2. In order to explain the purport of the above reference we may state that the respondent- company, namely, M/s. Shaennihon Steamship Co. Ltd., which is a foreign company, was assessed to income-tax at Karachi. The relevant assessment year was 1956-57 and the relevant accounting year had ended on the 30th of September 1955. The company had shown a loss of Rs. 11,181: but the Income-tax Officer did not accept this figure as correct and reduced it to Rs. 853. The reason was that the Income-tax Officer declined to allow initial and additional depreciation to the company. The assessm ent order is of 7…

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