2019 PTD 4

Case Laws / Head Notes / Paras

The learned counsel by placing reliance on the judgment of Hon’ble Supreme Court of Pakistan reported as Commissioner of Income Tax v. Pakistan Industrial Engineering Agencies Limited (1992 PTD 954), argued that thedepartment cannot dictate the taxpayer how to do business or how to utilize its funds. If the taxpayer enters in certain transactions for business purposes by adopting legal modes and one of the main purpose of entering into such transactions is not avoidance or reduction of tax liability, Hon’ble Supreme Court of Pakistan has very aptly and categorically laid down this principle in the aforesaid judgment in the following words: “An assessee is entitled to manage his own affairs to the best of his benefit even by adopting legal modes which may result in reducti...