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Lahore High Court 2016 Income Tax Ordinance (XLIX of 2001)

2016 PTD 1146

F.I.R.
COMMISSIONER OF INCOME TAX
Appellant
VS
KHUSHNOOD AHMED
Respondent

Case Laws / Head Notes / Paras

Question: (c) Whether Appellate Tribunal was justified to exclude the services provided under an agreement/contract from the transactions envisaged under clause (c) of Section 153(1) of the Income Tax Ordinance, 2001?

Answer: Department, while interpreting this clause in their own manner, is ignoring the grammatical rule that phrase other than a contract for shall also be read with the phrase the rendering of or providing of services, besides reading it with the phrase the sale of goods. In simple words ˜rendering of or providing of services under a contract shall be excluded from the clause (c). Our answer to Question No.(c) is also in Affirmative, i.e., against the applicant department.