Judicial Dictionary - B

Judicial Dictionary

Legislative Dictionary


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The definition of the word "Business", as given in section 2(4) of the Income Tax Ordinance, 1984 includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. The definition of business no doubt, includes the activity of taking a property on lease, setting up a market thereon and letting out the shops and stalls in the market. The important question which arises is, whether the acquisition of the property on lease and letting out of the shops and stalls was in the course of investment or whether it was essentially a part of the business and trading operation of the assessee. Paramount consideration which would weigh is, whether the acquisition of the property was by way of investment and whether the property was let out because of the assessee having a title in the same or whether the acquisition and letting out of the property constituted the business and trading activity of the assessee. ( Asha Enterprise (Pvt.) Ltd Vs. Commissioner of Taxes, 60 DLR (HCD) (2008) 669 ) 

Created OnJune 9, 2014, 4:04 AM