THE COMMISSIONER OF INCOME-TAX, NORTH ZONE (WEST PAKISTAN), LAHORE — 1966 PLD 828

Citation: 1966 PLD 828

Court: Lahore High Court

Year: 1970

Decision Date: 1970-12-31

Petitioner: THE COMMISSIONER OF INCOME-TAX, NORTH ZONE (WEST PAKISTAN), LAHORE JUDGMENT

Headnotes

Case cited as PLD 1966 SC 828

Judgment Text

Court Name: Lahore High Court Judge(s): Aslam Riaz Hussain, Qadeeruddin Ahmed Title:THE COMMISSIONER OF INCOME-TAX, NORTH ZONE (WEST PAKISTAN), LAHORE JUDGMENT Reported As: PLD 1971 Lahore 20 Result: Reference answered in affirmative Judgment JUDGMENT QADEERUDDIN AHMAD, C. J.--The Income-tax Appellate Tribunal of Pakistan at Lahore has referred the following question to us under subsection (1) of section 66 of the Income-tax Act "Whether, in the facts and circumstances of the case, the borrowed money invested in the undertaking was rightly included in the capital computation in accordance with subsection (3) of section 15-B, read with the Rules framed by the Central Government under the said subsection?" 2. The facts which form the background have been set out by the Income-tax Appellate Tribunal as follows :- "We are concerned with the assessment years 1953-54 and 1954-55, the account years being, respectively, the financial years 1952-53 and 1953-54. The assessee is a public limited company and its business consists of manufacture and sale of yarn of cloth. The company was incorporated on the 24th August 1946, and the commencement certificate was issued on the 29th November 1946. It did cotton ginning business and was assessed to tax for the assessessment year 1948-49. It is common ground that the company did not then own any industrial undertaking, machinery or plant of any sort. Later, the company set up a new industrial undertaking, 'Textile Mill and commenced its…

Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.