COMMISSIONER OF INCOME-TAX, RAWALPINDI VS RURAL FOOD PRODUCTS, RAWALPINDI
2001 P T D 2306
[Lahore High Court]
Before Nasim Sikandar and Jawwad S. Khawaja, JJ
COMMISSIONER OF INCOME‑TAX, RAWALPINDI
Versus
Messrs RURAL FOOD PRODUCTS, RAWALPINDI
C.T.R. No.81 of 1993, decided on 12/02/2001.
Income Tax Ordinance (XXXI of 1979)‑‑‑--
‑‑‑‑S. 136‑‑‑Reference to High Court‑‑‑Question of academic interest‑‑ Scope‑‑‑When answer to a question will not result into any change in the tax liability of an assessee, the issue raised would be of academic interest only and High Court would not answer such question ‑‑‑Assessee/company, in the present case stood liquidated and no legal person remained in existence, answer to the question even in favour of the Revenue would not change the situation as far the tax liability of the assessee/company was concerned‑‑ High Court declined to answer the question.
Shafaqat Mehmood Chohan Petitioner.
Muhammad Akram Khawaja for Respondent
ORDER
NASIM SIKANDAR, J.‑‑‑This is a case stated by the Lahore Bench of the Income‑tax Appellate Tribunal. The following question of law has been framed for our consideration and reply:‑‑‑
"Whether in the facts and the circumstances of the case the Income tax Appellate Tribunal was justified to hold that the income received by the assessee from the hire of its factory was the income from business notwithstanding that clause (d) of subsection (2) of section 30 of the Income Tax Ordinance, 1979 specifically provides that income from the hire of machinery alongwith building is to be computed as 'income from other source'?"
2. The learned counsel for the respondent at the outset states that since the respondent Company stands liquidated in the year 1994, any answer to the question will be of any academic interest only. However, the learned counsel for the Revenue insists that a question of law having been framed by the Tribunal it needs to be answered.
3. We will not agree. It is by now well‑settled that this Court does not answer questions of academic interest only. Where an answer to a question will not result into any change in the tax liability of an assessee, the issue raised would of an academic interest only. In the present case, since the A respondent‑assessee already stands liquidated and as such no legal person stands in existence, any answer to the aforesaid question even in favour of the Revenue will not change the situation as far the tax liability of the respondent company is concerned.
4. Therefore, we will decline to answer the question.
C.M.A./M.A.K./C‑82/LAnswer declined.