COMMISSIONER OF INCOME-TAX, LAHORE ZONE, LAHORE-Applicant vs S. — 1972 PTD 587

Citation: 1972 PTD 587

Court: Lahore High Court

Year: 1971

Decision Date: 1971-12-31

Parties: COMMISSIONER OF INCOME-TAX, LAHORE ZONE, LAHORE-Applicant vs S. JUDGMENT

Headnotes

Case cited as 1972 PTD 587

Judgment Text

Court Name: Lahore High Court Judge(s): Maulvi Mushtaq Hussain, M. S. H. Qureshi Title:COMMISSIONER OF INCOME-TAX, LAHORE ZONE, LAHORE-Applicant vs S. JUDGMENT Reported As: 1972 PTD 587 Result: Reference answered Judgment JUDGMENT MUSHTAQ HUSSAIN, J.-The assessee, who is a shareholder of Sh. Fazal Rehman & Sons Ltd., Multan, declared dividends amounting to Rs. 4,31,878 out of the profits of the Company. The Company enjoyed a tax-holiday under section 15-BB of the Income-tax Act. The Income-tax Officer, however, assessed this income to tax. The assessee successfully appealed to the Appellate Assistant Commissioner and the appeal of the Commissioner of Income-tax against this order was dismissed by the Income-tax Appellate Tribunal. The Commissioner of Income-t has, therefore, referred the following question to us for opini4 under section 66(1) of the Income-tax Act:- "Whether on the facts and in the circumstances of the ca the Tribunal was justified in holding that income from dividend declared out of the Company's profits exempt under section 15-BB of the Income-tax Act is also exempt from tax the hands of the shareholder of the Company." 2. Section 15-BB of the Income-tax Act runs as follows:------ "Section 15-BB.-Subject to the provisions of this Act, t income, profits and gains of an industrial undertaking set up Pakistan between the 1st day of April 1959 and the 30th day of June 1965 (both days inclusive) shall be exempt from Income tax and super tax payable under this…

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