MESSRS THE BATALA ENGINEERING Co. (PAK.) LTD., LAHORE vs THE — 1971 PTD 357

Citation: 1971 PTD 357

Court: Lahore High Court

Year: 1970

Decision Date: 1970-12-31

Parties: MESSRS THE BATALA ENGINEERING Co. (PAK.) LTD., LAHORE vs THE JUDGMENT

Headnotes

Case cited as 1971 PTD 357

Judgment Text

Court Name: Lahore High Court Judge(s): Nasim Hasan Shah, Qadeeruddin Ahmed Title:MESSRS THE BATALA ENGINEERING Co. (PAK.) LTD., LAHORE vs THE JUDGMENT Reported As: 1971 PTD 357 Result: Reference answered Judgment JUDGMENT NASIM HASAN SHAH, J.-This is a reference under section 66(1) of the Income-tax Act, 1922, made by the Income-tax Appellate Tribunal, Lahore, for our opinion on the following question of law framed by it :- "Whether in the facts and circumstances of the case, the Tribunal was right in holding that the surplus of Rs. 53,537 was the assessee's income liable to be assessed to tax? 2. The facts forming the background have been set out in the statement of the case prepared by the Tribunal and may be summarised as follows. Messrs The Batala Engineering Co. (Pakistan) Ltd., Lahore is the assessee. The assessee had a branch in London. It had two current accounts at that place, with the Grindlays' Bank. It bad also a current account with Grindlays' Bank at Bombay. The credit balances on the 31st July 1955 stood as under :- (i) Grindlay's Bank, Bombay Rs. 61,786 (in Pak. currency) (ii) Grindlay's Bank, London (in both the accounts).Rs. 1,31,475 Later on, there was revaluation of the Pakistan currency with the result that there was a total gain of Rs. 53,537 in the three accounts taken together. As regards the two accounts in London moneys were transferred from one account to the other account for maintenance of a branch office as well as for defraying the cost of…

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