COMMISSIONER INLAND REVENUE versus QUALITY TEXTILE MILLS LTD.
Sections 4 (4) (b), 67, 154 and 169 Income Tax Rules, 2001, Cotton 13 and 231 derived from cotton exports (ie maritime freight, export development surcharges, surcharges, clearing / forwarding costs and related expenses). Income tax was incurred by the taxpayer in obtaining such income from the taxpayer, taking into account the expense of exporting the taxable income in the calculation of the income taxable on the local sale of the yarn, R231 of the Income Tax Rules 2001 It is not possible to specify the use of the Rule 13 (6) (e) of Income Tax Rules 2001, which specifically covers the local sale of yarn from income tax from Pakistan, which is received under the head income from the business, thus the expenditure is ordinary sales. In order to determine income in the tax system, local sales can be deducted against local sales; the costs associated with exporting taxable income on local sales cannot be deducted.
Related judgments — Karachi High Court Sindh, 2013
