COMMISSIONER OF INCOME TAX, ZONE "A" KARACHI VS Messrs COMBINED INVESTMENT (PVT.) LTD. and 5 others, 2007 PTD-SUPREME-COURT 1981 (2006)

(On appeal from the judgment of High Court of Sindh, dated 25-10-1994 in ITR Nos. 9/86, 29/87, 124/84, 45/88, 59/89, 290/88 and 4/89).

Income Tax Act (XI of 1922)---

----S. 4(1)---Deeming interest---Department would charge income tax prospectively on interest of loan---Supreme Court disposed of appeal in such terms.

M. Bilal, Senior Advocate 5uprerne Court with Mumtaz Ahmed, Member (Legal) C.B.R. for Appellants.

Iqbal Salman Pasha, Advocate Supreme Court for Respondent (in C.A. Nos. 1443 and 1446 of 1996).

Respondents not represented in remaining cases.

ORDER

IFTIKHAR MUHAMMAD CHAUDHRY, C.J.---Learned counsel appearing for the appellants contended that the Department had not charged income tax on the deeming interest retrospectively but with effect from 1st July, 1976 as it has been provided in the Explanation-8 to section 4(1) of the Repealed Income Tax Act, 1922, therefore, instead of dilating upon other points of the case, the appeals may be disposed of with the observation that the tax will be charged by the Department from the respondent with effect from 1st July, 1976 on the interest of loan.

2. Mr. Iqbal Salman Pasha, learned counsel appearing for respondent in Civil Appeals Nos. 1443 and 1446 of 1996 had no g objection if the appeals arc disposed of in these terms. Order accordingly, the appeals are disposed of in view of the statement so made by the learned counsel for the appellants. No order as to costs.

S.A.K./C-9/SCOrder accordingly.