MESSRS EVEREADY PICTURES, KARACHI vs THE COMMISSIONER OF INCOME TAX — 1972 PLD 243

Citation: 1972 PLD 243

Court: Sindh High Court

Year: 1971

Decision Date: 1971-12-31

Parties: MESSRS EVEREADY PICTURES, KARACHI vs THE COMMISSIONER OF INCOME TAX JUDGMENT

Headnotes

Case cited as PLD 1972 Karachi 243

Judgment Text

Court Name: Sindh High Court Judge(s): Qadeer-ud-Din Ahmad, Muhammad Haleem Title:MESSRS EVEREADY PICTURES, KARACHI vs THE COMMISSIONER OF INCOME TAX JUDGMENT Reported As: PLD 1972 Karachi 243 Result: Reference answered in affirmative Judgment JUDGMENT MUHAMMAD HALEEM, J.-The dispute relates to the assessment and levy of sales tax for three chargeable accounting years 1953-54, 1954-55 and 1955-56. The applicant is a firm engaged in the business of producing films. On completion of a film it either itself arranges for the exhibition of the film in the cinema houses or gives it to a distributor for such exhibition. The Income-tax and Sales Tax Officer, Company Circle III, Karachi, assessed and levied sales tax on the applicant by his orders dated the 3rd of December 1957 for the chargeable accounting years referred to above. 2. The applicant went in appeal and the Appellate Assistant Commissioner of Income-tax, 'A' Range, Karachi, rejected it vide his order dated 11th October 1958. The applicant then preferred an appeal to the Income-tax Appellate Tribunal. The following two questions were raised :- "(1) The Appellate Assistant Commissioner erred In not declaring the film producers exempt under the sales tax when the appellants are not manufacturers under section 2(11). (2) Sales tax is to be charged on the cost of print only and not on the cost of raw films consumed during the process of producing the films." 3. The Tribunal while repelling the contention of the applicant…

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